Analysts predict that the prices of gold and silver will maintain an upward trend next week. However, the rise may be constrained due to profit-taking at higher levels while investors await the release of key inflation data from the United States.
The main factors determining the dynamics of precious metal prices will be the Core PCE inflation indicators and GDP data. Additionally, attention will be focused on the development of the geopolitical situation in the Middle East, particularly the agreement between the US and Iran, as well as the resumption of operations in the Strait of Hormuz.
Pranav Mer, Senior Vice President of Commodities and Currency Research at JM Financial Services Ltd, noted that a positive sentiment is expected in the upcoming trading session, although the possibility of profit-taking cannot be ruled out.
In the domestic market, gold futures with October delivery rose by ₹7,932, which is 5.13 percent, closing the week at ₹1.62 lakh per 10 grams on the Multi Commodity Exchange (MCX). Silver with September delivery showed an increase of ₹10,673, or 4.52 percent, ending trading at ₹2.46 lakh per kilogram.
Jatin Trivedi, Vice President of Commodities and Currency Research Analyst at LKP Securities, stated that gold remained strongly positive this week, increasing by more than 5 percent and closing at around ₹1.62 lakh per 10 grams on MCX. He added that this growth was supported by increased interest in purchasing precious metals, lower bond yields, and improved liquidity conditions.
In international markets, Comex gold futures with December delivery rose by $243.3, or 5.5 percent, reaching $4,680.6 per ounce. September silver futures rose by $4.42, almost 7 percent, amounting to $69.53 per ounce in New York.
Mer also reported that gold futures ended another week in the black, and international spot gold closed above $4,620, demonstrating a weekly increase of more than 5 percent in global markets. The sharp price movement mid-week was triggered by liquidity measures announced by the US Treasury Department aimed at strengthening the repurchase of long-term bonds.
Precious metal traders are also closely watching the Jackson Hole symposium scheduled for August 27–29, where Federal Reserve Chairman Kevin Warsh will deliver his first keynote address.