Gold Prices Expected to Rise Amid Inflation and West Asia Tensions

Gold and silver prices are expected to continue their upward momentum next week, driven by inflation data from major economies and developments in West Asia. Analysts predict that the combination of these factors will keep gold highly reactive.

New Delhi-based analysts expect gold and silver 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, respectively.

The US labor market data's weaker-than-expected performance revived expectations of a more accommodative monetary policy from the Federal Reserve, which has supported gold prices. The weaker dollar also encouraged fresh buying in precious metals, allowing gold to post one of its strongest weekly gains in recent months.

According to Jateen Trivedi, VP Research Analyst at LKP Securities, developments involving the US and Iran will remain in focus next week, with any unexpected diplomatic or military announcement potentially triggering sharp moves in bullion. He added that volatility is expected to remain elevated due to a combination of US economic data, Federal Reserve expectations, and ongoing geopolitical uncertainty.