New Delhi, Sep 28: Gold and silver prices are anticipated to continue their upward trend this week, although late profit-booking may occur due to the upcoming release of critical global economic indicators.
Traders are expected to closely observe manufacturing and services PMI data, US non-farm payrolls, employment stats, consumer confidence for September, and several speeches from Federal Reserve officials.
Analysts indicate that while bullish momentum persists, a correction may emerge towards the week’s end.
Gold prices surged by over 3% last week, attributed to stronger-than-expected US economic data that has postponed interest rate cut expectations.
Specifically, on the Multi Commodity Exchange (MCX), gold futures for December delivery increased by 3.77%, closing at ₹1,14,891 per 10 grams after reaching an all-time high of ₹1,15,139 per 10 grams.
This rise marks the twelfth consecutive weekly gain for gold since late June, reflecting a combination of favorable US macroeconomic signals, global reserve reallocation, and domestic festive demand, particularly as Diwali approaches.
Market dynamics include a notable shift among central banks towards gold, compounded by a decrease in the dollar’s global reserve share and increasing gold’s share to a three-decade high.
Analysts remain cautious as profit-booking could lead to fluctuations in gold prices, with estimates suggesting a potential rally to USD 4,000 per ounce in international markets.
Silver also exhibited strong performance, gaining 9.28% on the MCX to close at ₹1,41,889 per kilogram, fueled by rising copper prices and strong gold performance.
The silver-to-gold ratio has decreased, signaling market volatility, with predictions for silver prices reaching ₹1,50,000-1,70,000 per kilogram in the near term.
Overall, upcoming economic data is likely to influence market sentiments as analysts await insights to determine the future direction of gold and silver prices. (PTI)
