Gold, silver prices likely to extend gains next week as investors await US data

Gold and silver prices are expected to maintain their upward momentum next week, although profit-booking at higher levels could limit the gains as investors await key US inflation and economic data, analysts said.US Core Personal Consumption Expenditures (PCE) inflation and GDP figures are expected to be the key triggers for bullion prices.

Developments around West Asia, particularly the US-Iran peace deal and reopening of the Strait of Hormuz, will also remain in focus.“In the coming trading session, we expect bias to remain positive, but some profit-booking cannot be ruled out,” Pranav Mer, senior vice president, EBG - commodity & currency research, JM Financial Services Ltd, said, as cited by news agency PTI.Gold gains over 5% on MCX, silver rises 4.5%On the domestic market, gold futures for October delivery gained Rs 7,932, or 5.13 per cent, during the week to close at Rs 1.62 lakh per 10 grams on the Multi Commodity Exchange (MCX).Silver futures for September delivery surged Rs 10,673, or 4.52 per cent, to settle at Rs 2.46 lakh per kg.“Gold remained firmly positive this week, gaining more than 5 per cent to close near Rs 1.62 lakh per 10 grams on the MCX,” Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.The rally was supported by renewed buying interest in bullion, softer bond yields and improving liquidity conditions, he said.Global bullion prices also climbIn international markets, Comex gold futures for December delivery rose $243.3, or 5.5 per cent, during the week to close at $4,680.6 per ounce.Silver futures for September delivery climbed $4.42, or nearly 7 per cent, to end at $69.53 per ounce in New York.“Gold futures ended yet another week in the positive with International spot gold closing above $4,620, ending with a weekly gain of more than 5 per cent in global markets,” Mer said.He attributed the sharp mid-week price move to liquidity measures announced by the US treasury department to double down on its buyback of longer-dated bonds.Bullion traders will also closely watch the Jackson Hole symposium from August 27 to 29, Mer said.Federal Reserve Chair Kevin Warsh is scheduled to deliver his first keynote address at the event, making the gathering an important focus for markets alongside the upcoming US inflation and GDP data.Get the latest Business News and Live updates.

Download the TOI app.