Gold and Silver Prices Set to React to US Inflation Report

Global markets are bracing for several key economic indicators that could impact gold and silver prices. The US Consumer Price Index (CPI) inflation report for August is due on September 11, which analysts say will be a crucial trigger for bullion markets amidst speculation over interest rate outlook.

According to Pranav Mer, Senior Vice President of EBG - Commodity & Currency Research at JM Financial Services Ltd, 'US inflation numbers would be the key trigger for bullion markets amid considerable speculation over the interest rate outlook.'

Last week, gold futures for October delivery fell 2.2% to Rs 1.52 lakh per 10 grams on the Multi Commodity Exchange, while silver declined nearly 2% to Rs 2.37 lakh per kg.

Global central banks 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 and taking its year-to-date buying to 60 tonnes and total reserves to 2,366 tonnes, according to World Gold Council data.