Gold, Silver Prices Expected to Remain Positive Amid West Asia Developments
Analysts expect gold and silver prices to remain positive next week amidst developments in West Asia and key global economic data. Market participants will track US housing and trade data, inflation figures from the UK, Eurozone, and Japan, as well as China's economic indicators for cues on industrial metals.
The minutes of the Federal Reserve's FOMC meeting will also be watched for signals on the US Central bank's monetary policy outlook. Pranav Mer, Senior Vice President at EBG - Commodity & Currency Research, JM Financial Services Ltd, expects gold to move up towards Rs 1.57 lakh per 10 grams and silver to reach Rs 2.54 lakh per kg level.
On the domestic front, MCX gold futures for October delivery climbed Rs 2,686 or nearly 2% last week to close at Rs 1.54 lakh per 10 grams. Jateen Trivedi, VP Research Analyst -- Commodity and Currency, LKP Securities, believes that gold traded higher this week, gaining 1%, while the rally extended more than 2% at the peak before profit-booking emerged at higher levels.
The recent decline in US rate hike bets following weaker-than-expected non-farm payroll data and steady inflation has supported bullion prices. Safe-haven demand also contributed to gold's rise amid West Asia conflict and US-Iran tensions over the Strait of Hormuz, with no resolution in sight.