Bullion Set for Further Gains on Pending US Inflation Data

Gold and silver prices are expected to maintain their upward momentum next week, although profit-booking at higher levels may temper the rally. This is due to investors awaiting key US inflation data, specifically the US Core Personal Consumption Expenditures (PCE) inflation and GDP figures.

The developments surrounding West Asia geopolitics, particularly the US-Iran peace deal and reopening of the Strait of Hormuz, will also remain in focus, analysts said. Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd, stated that 'in the coming trading session, we expect bias to remain positive, but some profit-booking cannot be ruled out.'

On the domestic front, gold futures for October delivery gained ₹7,932, or 5.13 per cent, to close the week at ₹1.62 lakh per 10 grams on the Multi Commodity Exchange (MCX). Similarly, silver for September delivery surged ₹10,673, or 4.52 per cent, to settle at ₹2.46 lakh per kilogram.

In international markets, Comex gold futures for December delivery rose $243.3, or 5.5 per cent, to close at $4,680.6 per ounce. Silver futures for September delivery climbed $4.42, or nearly 7 per cent, to $69.53 per ounce in New York.

The Jackson Hole symposium, scheduled for August 27-29, will also be closely watched by bullion traders, with Federal Reserve Chair Kevin Warsh set to deliver his first keynote address at the event, Mer said.