West Asia developments, Fed minutes set to shape bullion's next move: Analysts

Analysts predict gold and silver prices will stay bullish next week, but volatility may linger due to West Asia tensions and global economic data. Market observers will monitor US housing, trade data, UK, Eurozone, and Japanese inflation figures, along with China's economic indicators for hints on industrial metals. Federal Reserve minutes will also provide insights into the US Central Bank's monetary policy outlook.

Pranav Mer, a senior analyst at JM Financial Services, expects gold to reach ₹1.57 lakh per 10 grams and silver to reach ₹2.54 lakh per kilogram. Domestic gold futures for October delivery rose ₹2,686 or 2%, closing at ₹1.54 lakh per 10 grams on the MCX, while MCX silver for September climbed ₹4,458 or 1.9%, reaching ₹2.35 lakh per kilogram.

Gold gained 1% this week, extending a more than 2% rally at its peak before profit-taking set in. MCX gold has gained nearly 9.5% in August, indicating consolidation and occasional profit-taking at higher levels in the near term. Comex gold futures for December delivery increased $37.6 or 1% to $4,437.3 per ounce in international markets, while silver rose $1.61 or 2.5% to $65.11 an ounce in New York.

The US dollar, interest-rate expectations, and geopolitical developments will continue to influence bullion prices, according to Mer. Safe-haven demand supported gold amid the West Asia conflict and US-Iran tensions over the Strait of Hormuz, with no resolution in sight. Silver maintained a positive bias as industrial metals' rally paused.