Analysts expect gold and silver to hold positive bias next week even as volatility persists, with West Asia tensions, Fed minutes, and global data in focus.
Alpha Score of 69 reflects moderate overall profile with strong momentum, strong value, moderate quality, moderate sentiment.
Gold and silver will likely hold their positive bias next week even as volatility stays elevated, four analysts said. The catalysts include developments in West Asia, a batch of global economic data, and minutes from the Federal Reserve's last meeting.
Pranav Mer, senior vice president at JM Financial Services, said gold and silver could test ₹1.57 lakh per 10 grams and ₹2.54 lakh per kg respectively. On the Multi Commodity Exchange, gold futures for October delivery closed at ₹1.54 lakh per 10 grams Friday, up ₹2,686 or nearly 2% for the week. Silver for September delivery gained ₹4,458, or 1.9%, to ₹2.35 lakh per kilogram.
In New York, Comex gold futures for December delivery rose $37.6, or nearly 1%, to $4,437.3 per ounce. Silver added $1.61, or 2.5%, to $65.11 an ounce. Mer said gold futures closed higher for a second consecutive week. They remained consolidative after an 11% rally from below $4,000 per ounce.
Bullion prices drew support from reduced bets on a September rate hike by the Fed after weaker-than-expected payrolls and steady inflation, Mer said. Safe-haven demand also helped gold as the West Asia conflict and U.S.-Iran tensions over the Strait of Hormuz continued, with no resolution in sight, he added.
Silver held a positive bias. Prices consolidated as the rally in industrial metals paused, Mer said. Jateen Trivedi, VP research analyst at LKP Securities, said gold traded higher for the week, gaining 1%. The rally extended more than 2% at the peak before profit-taking emerged at higher levels. MCX gold has gained nearly 9.5% in August. Consolidation and intermittent profit-booking at higher levels are more likely in the near term, Trivedi said.
The week ahead brings U.S. housing and trade data, inflation reports from the UK, Eurozone, and Japan, and Chinese economic indicators for direction on industrial metals. The Fed's July meeting minutes will also offer clues on the policy outlook, the analysts said.
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