Gold and Silver Price Prediction This Week: Gold and silver prices could continue rising next week after both metals posted strong gains in the latest trading session. However, experts expect some investors to book profits because prices have already moved sharply higher. Markets will mainly watch fresh US economic data for clues about the next move in bullion prices.
The main events to watch are the US Core Personal Consumption Expenditures (PCE) inflation data and US GDP figures. These numbers can affect expectations about interest rates and the US Federal Reserve’s next steps.
Any major change in those expectations could quickly move gold and silver prices. Investors will also keep an eye on developments in West Asia. The US-Iran peace deal and any progress towards reopening the Strait of Hormuz are expected to remain important for the market.
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Gold and Silver Rise on MCX
On the domestic market, gold futures for October delivery gained Rs 7,932 during the week. This was a rise of 5.13%. Gold ended at around Rs 1.62 lakh per 10 grams on the Multi Commodity Exchange of India (MCX).
Silver also had a strong week. September silver futures climbed Rs 10,673, or 4.52%, and finished at around Rs 2.46 lakh per kilogram on the MCX. Recent trading has seen both metals move to very high levels as demand for bullion increased.
“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.
According to Trivedi, fresh buying in bullion helped the rally. Lower bond yields and better liquidity conditions also gave support to prices.
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Pranav Mer, Senior Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, expects the positive trend to continue, though some selling could happen after the recent jump.
“In the coming trading session, we expect bias to remain positive, but some profit-booking cannot be ruled out,” Mer said.
Global Prices also move Higher
The rally was also seen in international markets. December Comex gold futures increased by $243.3 during the week. That was a gain of 5.5%, taking the price to $4,680.6 per ounce.
September silver futures in New York went up by $4.42. The increase was nearly 7%, with silver ending at $69.53 per ounce. International spot gold also closed above $4,620 and gained more than 5% during the week.
“Gold futures ended yet another week in the positive with International spot gold closing above USD 4,620, ending with a weekly gain of more than 5 per cent in global markets,” Mer said.
The sharp jump in prices in the middle of the week came after the US Treasury announced liquidity measures to increase its buyback of longer-dated bonds. Investors are also expected to watch the Jackson Hole symposium, scheduled for August 27 to 29, for fresh signals about US monetary policy.
