Gold Prices Set to Rise Amid Fed Minutes and West Asia Tensions
Analysts are predicting positive gold and silver prices next week due to the Federal Reserve minutes, West Asia developments, and global economic data. The US housing and trade data, inflation figures from key countries, and China's economic indicators will be closely watched for cues on industrial metals.
The minutes of the Federal Reserve's FOMC meeting are also expected to provide signals on the US Central bank's monetary policy outlook. Pranav Mer, Senior Vice President at EBG - Commodity & Currency Research, JM Financial Services Ltd, said that gold and silver prices are likely to move up towards Rs 1.57 lakh per 10 grams and Rs 2.54 lakh per kg level.
On the domestic front, gold futures for October delivery climbed Rs 2,686, or nearly 2%, last week on the Multi Commodity Exchange (MCX). MCX silver for September contract gained Rs 4,458, or 1.9%, to Rs 2.35 lakh per kilogram.
According to Jateen Trivedi, VP Research Analyst -- Commodity and Currency, LKP Securities, the US dollar, interest-rate expectations, and geopolitical developments will remain the key drivers for bullion prices. MCX gold has gained nearly 9.5% in August, making consolidation and intermittent profit-booking at higher levels more likely in the near term.