Gold and silver are expected to continue their recent rally as traders monitor inflation data from major economies and geopolitical developments in West Asia, with market analysts forecasting further upward momentum for the metals.
Gold and silver are likely to stay supported in the coming week as traders watch inflation readings from the US, Germany, Japan and India, while developments around efforts to ease tensions in West Asia could also steer sentiment. Market participants are also expected to keep an eye on Chinese economic data, which tends to influence industrial metals and, by extension, silver, as the metal has a strong manufacturing component alongside its role as a store of value.
According to JM Financial Services, the near-term outlook remains constructive, with Pranav Mer saying gold and silver “look positive” and could rise towards ₹1.57 lakh per 10 grams and ₹2.80 lakh per kilogram respectively. The recent move has already been sharp: gold futures for October delivery rose ₹8,444, or nearly 6%, over the week to finish at ₹1.51 lakh per 10 grams, while September silver futures climbed ₹14,268, or nearly 7%, to settle at ₹2.31 lakh per kilogram on the Multi Commodity Exchange.
LKP Securities said the latest surge in gold was driven in part by weaker-than-expected US labour market figures, which revived expectations that the Federal Reserve may adopt a softer policy stance. Jateen Trivedi of LKP also pointed to a weaker dollar, which tends to make dollar-priced bullion cheaper for buyers using other currencies and can encourage fresh demand. That combination helped gold deliver one of its strongest weekly gains in recent months.
Broader market history suggests the current momentum is being watched closely by investors after a mixed run for precious metals in recent months. In September 2023, gold and silver both lost ground over the month, with silver showing sharper swings than gold, according to price-tracking data and market round-ups. Sprott has also noted that silver’s long-term outlook is shaped by industrial demand, especially from solar panels and other green technologies, while gold continues to benefit from steady central-bank buying. Those longer-term forces now sit alongside the immediate focus on inflation, interest rates and geopolitical risk.
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