Gold, Silver Eye Gains on US Inflation Data & Fed Signals
By Market Desk
Gold and silver poised for gains driven by US inflation and GDP data. Fed signals and geopolitical events also key. Profit-booking may temper rallies.
Gold and silver prices are poised to maintain their positive trajectory into the coming week, with analysts projecting continued momentum. However, potential profit-booking at elevated levels could moderate the overall rally.
The primary catalysts for bullion will emerge from critical US economic releases, including Core Personal Consumption Expenditures (PCE) inflation and Gross Domestic Product (GDP) figures. Geopolitical developments in West Asia, such as progress on the US-Iran peace deal and the possible reopening of the Strait of Hormuz, also remain key considerations for traders.
Domestic Market Highlights
On the Multi Commodity Exchange (MCX) in India, gold futures for October delivery posted a significant increase. This domestic rally received support from renewed investor interest, declining bond yields, and improved market liquidity.
- Gold (October delivery): Increased ₹7,932 (5.13%)
- Gold (October delivery): Closed at ₹1.62 lakh per 10 grams
- Silver (September delivery): Surged ₹10,673 (4.52%)
- Silver (September delivery): Settled at ₹2.46 lakh per kilogram
Comex Performance and Liquidity Boost
International markets mirrored the domestic uptrend, with Comex gold futures for December delivery showing strong gains. A mid-week price surge was attributed to liquidity measures implemented by the US Treasury Department.
- Comex Gold (December delivery): Rose $243.3 (5.5%)
- Comex Gold (December delivery): Reached $4,680.6 per ounce
- Comex Silver (September delivery): Climbed $4.42 (nearly 7%)
- Comex Silver (September delivery): Closed at $69.53 per ounce
The US Treasury Department’s actions included an increased buyback of longer-dated bonds, directly impacting market liquidity and contributing to bullion’s ascent.
Upcoming Economic Watchpoints
Traders are closely monitoring the release of key US economic indicators that will shape market sentiment. These figures are crucial for understanding the Federal Reserve’s potential policy direction.
- US Core Personal Consumption Expenditures (PCE) inflation
- US Gross Domestic Product (GDP) figures
- Geopolitical events in West Asia
- Jackson Hole symposium (August 27-29)
Federal Reserve Chair Kevin Warsh is expected to deliver a keynote address at the Jackson Hole symposium, providing further insights into the economic outlook and monetary policy. This event is keenly anticipated by bullion traders globally.