West Asia tensions, Fed minutes to shape gold, silver prices

Gold and silver prices are expected to stay positive but highly volatile next week, driven by West Asia developments and global economic data, analysts said. Market participants will track US housing and trade data, inflation figures from the UK, Eurozone and Japan, and China's economic indicators. The minutes of the Federal Reserve's FOMC meeting will be watched for signals on US monetary policy, both thehindubusinessline.com and Rediff report.

Pranav Mer of JM Financial Services said gold and silver could move towards Rs 1.57 lakh per 10 grams and Rs 2.54 lakh per kg. On the Multi Commodity Exchange (MCX), gold futures for October delivery rose nearly 2% last week to close at Rs 1.54 lakh per 10 grams. MCX silver for September gained 1.9% to Rs 2.35 lakh per kg. Internationally, Comex gold for December rose nearly 1% to $4,437.3 per ounce, and silver went up 2.5% to $65.11 an ounce in New York.

Bullion prices found support as traders reduced bets on a September Fed rate hike after weaker non-farm payroll data and steady inflation. Safe-haven demand also supported gold amid the West Asia conflict and US-Iran tensions over the Strait of Hormuz. Jateen Trivedi of LKP Securities said the US dollar, interest-rate expectations and geopolitical developments remain key drivers. MCX gold has gained nearly 9.5% in August, making consolidation and profit-booking likely in the near term.