New Delhi: Gold and silver prices are expected to remain firm next week after posting strong gains, although profit-booking at higher levels could limit the rally, according to analysts.
Bullion traders will closely track US inflation and economic data along with signals from the Federal Reserve for the next direction in precious metals.
US inflation data in focus
The US Core Personal Consumption Expenditures (PCE) inflation data and GDP figures will be among the biggest triggers for gold and silver prices.
The Jackson Hole symposium, scheduled for August 27-29, will also remain in focus, with Federal Reserve Chair Kevin Warsh set to deliver his first keynote address at the event.
Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research at JM Financial Services, expects the overall bias to remain positive, though some profit-booking cannot be ruled out.
West Asia developments, particularly the US-Iran peace process and the possible reopening of the Strait of Hormuz, will also be closely monitored.
Gold jumps over 5% on MCX
Gold futures for October delivery gained ₹7,932, or 5.13%, during the week to close at around ₹1.62 lakh per 10 grams on the Multi Commodity Exchange (MCX).
Silver futures for September delivery jumped ₹10,673, or 4.52%, to settle at around ₹2.46 lakh per kg.
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said renewed buying interest, softer bond yields and improving liquidity conditions supported gold prices during the week.
Global bullion prices surge
The rally was also strong in international markets.
Comex gold futures for December delivery gained $243.3, or 5.5%, to finish at $4,680.6 per ounce.
September silver futures jumped $4.42, or nearly 7%, to settle at $69.53 per ounce in New York.
Analysts said the sharp mid-week rally was supported by liquidity measures announced by the US Treasury Department involving increased buybacks of longer-dated bonds.
Going forward, inflation numbers, Fed commentary and geopolitical developments are expected to determine whether bullion can extend its recent gains.
