Gold, Silver Likely To Shine Next Week As Traders Await US Inflation Data, Fed Signals: Analysts

Gold and silver prices are expected to retain their upward momentum next week, though profit-booking at higher levels may temper the rally as investors await key US inflation data, analysts said.

US Core Personal Consumption Expenditures (PCE) inflation and GDP figures will be the key triggers for bullion.

Developments surrounding West Asia geopolitics, particularly the US-Iran peace deal and reopening of the Strait of Hormuz, will also remain in focus, they added.

"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.

On the domestic front, gold futures for October delivery gained ₹7,932, or 5.13%, to close the week at ₹1.62 lakh per 10 grams on the Multi Commodity Exchange (MCX).

Silver for September delivery surged ₹10,673, or 4.52%, to settle at ₹2.46 lakh per kilogram.

"Gold remained firmly positive this week, gaining more than 5 per cent to close near ₹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 added.

In international markets, Comex gold futures for December delivery rose $243.3, or 5.5%, to close at $4,680.6 per ounce.

Silver futures for September delivery climbed $4.42, or nearly 7%, to $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% in global markets," Mer said.

The sharp price move mid-week was ignited by liquidity measures announced by the US Treasury Department to double down on its buyback of longer-dated bonds, he added.

The Jackson Hole symposium, scheduled for August 27-29, will also be closely watched by bullion traders, with Federal Reserve Chair Kevin Warsh set to deliver his first keynote address at the event, Mer said.