Gold and Silver Poised for Further Gains Amid Global Economic Uncertainty

Gold and silver prices are poised to extend their rally next week as inflation data from major economies and developments in West Asia set the tone for bullion. Investors will be tracking inflation numbers from the US, Germany, Japan, and India, while upcoming Chinese economic data will also impact industrial metals.

In the domestic market, gold futures for October delivery rose by Rs 8,444, or nearly 6 per cent, to close at Rs 1.51 lakh per 10 grams during the week. Silver futures for the September contract surged Rs 14,268, or nearly 7 per cent, to settle at Rs 2.31 lakh per kilogram on the MCX.

Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, attributed gold's strong rally this week to weaker-than-expected US labour market data, which revived expectations of a more accommodative monetary policy from the Federal Reserve. The weaker dollar also encouraged fresh buying in precious metals.