Gold and Silver Prices Sensitive to US Inflation Data and Geopolitical Developments

Gold and silver prices are expected to be sensitive to several factors this week, including upcoming US inflation data, crude oil movements, and geopolitical developments in West Asia. Analysts believe investors will closely track signals on the global interest rate outlook, which could impact bullion markets.

The US Consumer Price Index (CPI) inflation report for August 2026 is scheduled to be released on September 11, and this data will be a key trigger for gold and silver prices. Pranav Mer, Senior Vice President of EBG - Commodity & Currency Research at JM Financial Services Ltd, said that in gold, the prices look for resistance at Rs 1.57 lakh per 10 grams, while in silver, we still maintain a positive bias till prices are above support at Rs 2.31 lakh per kg.

Last week, gold futures for October delivery on the Multi Commodity Exchange (MCX) declined by Rs 3,514 or 2.2%, to Rs 1.52 lakh per 10 grams. Silver futures fell by Rs 4,786 or nearly 2%, to Rs 2.37 lakh per kg. International markets also saw a decline in gold and silver prices, with Comex gold futures for December delivery falling USD 53.3 or nearly 1.2% to end the week at USD 4,476.6 per ounce.

Central banks globally continue to diversify their reserves, with the People's Bank of China buying 20 tonnes of gold in August, marking its 21st consecutive month of purchases. Its year-to-date buying has reached 60 tonnes, while total gold reserves stand at 2,366 tonnes.