Where are gold and silver prices headed next week? Fed minutes, Middle East in focus

Gold and silver prices are anticipated to continue their upward trend next week, but the momentum will depend on factors such as geopolitical events and economic indicators. Analysts believe bullion will remain strong as markets consider various international cues, including developments in the Middle East, US housing and trade data, inflation figures from major economies, and China's economic indicators.

The Federal Reserve's minutes from the recent FOMC meeting will also be closely monitored for insights into the central bank's monetary policy outlook.

Domestic gold futures for October delivery increased by Rs 2,686, or nearly 2% last week, closing at Rs 1.54 lakh per 10 grams on the Multi Commodity Exchange (MCX). Silver futures for September delivery rose by Rs 4,458, or 1.9%, to Rs 2.35 lakh per kilogram. Over the past week, gold has gained 1%, while silver's rally has extended by more than 2%.

However, the sharp August run-up may bring some pauses in the near term, with consolidation and intermittent profit-taking expected due to MCX gold's nearly 9.5% gain this month. Globally, Comex gold futures for December delivery rose by $37.6, or nearly 1%, to $4,437.3 per ounce, while silver gained $1.61, or 2.5%, to $65.11 an ounce. Bullion prices found support as traders reduced bets on a September rate hike by the US Federal Reserve following weaker-than-expected non-farm payroll data, and steady inflation.

The safety demand for bullion has persisted amid Middle East conflict and US-Iran tensions over the Strait of Hormuz, with no resolution in sight. Silver also retained its positive bias, although prices consolidated as the recent industrial metals rally paused. For bullion investors, the key focus will remain on the US dollar, interest-rate expectations, and geopolitical developments.