Gold and silver are expected to maintain support next week as traders navigate new inflation figures, US interest rate outlooks, and escalating tensions in West Asia, with geopolitical risks and softer economic data fueling the rally.
Gold and silver are likely to keep drawing support next week as traders weigh fresh inflation readings, the outlook for US interest rates and renewed tension in West Asia. Analysts said the combination of softer economic data, a weaker dollar and lingering geopolitical risk has kept precious metals in favour.
The latest leg higher followed a strong week for bullion. On the Multi Commodity Exchange, gold futures for October delivery rose 6% to ₹1.51 lakh per 10 grams, while silver futures for September gained nearly 7% to ₹2.31 lakh per kg. In international trade, December gold futures jumped 7% to $4,399.7 an ounce and September silver climbed nearly 10% to $63.50 an ounce. JM Financial Services’ Pranav Mer expects the rally to continue in the near term, with gold possibly moving towards ₹1.57 lakh per 10 grams and silver towards ₹2.80 lakh per kg.
The move has been driven in part by weaker US labour market data, which revived bets that the Federal Reserve may lean towards easier policy. That fits a broader pattern seen through 2025 and into 2026, when softer dollar levels and expectations of rate cuts helped push precious metals higher. A June 2026 market update also noted that firmer US inflation readings had at times pressured gold and silver by reinforcing the case for tighter policy, showing how sensitive the market remains to central bank signals.
Attention now turns to inflation data from the US, Germany, Japan and India, along with Chinese economic figures that matter especially for silver because of its industrial demand. Market participants are also watching West Asia, particularly relations involving the US and Iran, for any sudden diplomatic breakthrough or military escalation. Analysts say those forces could trigger sharp swings when markets reopen, even if the broader trend remains constructive for bullion.
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