Gold and Silver Prices Surge Amid Inflation Fears and Geopolitical Tensions

Gold and silver prices are expected to remain in the spotlight next week as investors assess inflation trends across key economies and track developments on efforts to end hostilities in West Asia.

According to Pranav Mer, Senior Vice President of EBG - Commodity & Currency Research at JM Financial Services Ltd, 'gold and silver momentum looks positive and are expected to trade with a positive bias and move up towards Rs 1.57 lakh per 10 grams and Rs 2.80 lakh per kg in the short term.'

The weaker US jobs data has boosted gold prices, which surged nearly 6% this week as investors revived expectations of a more accommodative monetary policy from the Federal Reserve.

On the domestic front, gold futures for October delivery climbed Rs 8,444 to close at Rs 1.51 lakh per 10 grams, while silver futures for the September contract surged Rs 14,268 to settle at Rs 2.31 lakh per kilogram on the Multi Commodity Exchange.

Mer noted that gold broke out of its consolidation range and ended the week with gains of more than 6% supported by a reversal in the US dollar and crude prices remaining in corrective mode.