Gold and Silver Prices Register Strong Weekly Gains on MCX as Analysts Anticipate Continued Momentum

Precious metals closed the week with substantial gains across domestic and international exchanges, driven by renewed buying interest, softer bond yields, and improving liquidity conditions. Analysts suggest that the upward momentum is likely to persist in the coming sessions, although potential profit-booking at higher levels remains a possibility as market participants await crucial US macroeconomic data.

On the domestic front, gold futures for October delivery on the Multi Commodity Exchange (MCX) gained ₹7,932, or 5.13 per cent, closing the week at ₹1.62 lakh per 10 grams. Silver for September delivery saw an even sharper increase, surging ₹10,673, or 4.52 per cent, to settle at ₹2.46 lakh per kilogram.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, noted that gold remained firmly positive throughout the week, supported by renewed bullion buying, softer bond yields, and improving liquidity conditions.

In international markets, Comex gold futures for December delivery rose $243.3, or 5.5 per cent, to close at $4,680.6 per ounce. Meanwhile, silver futures for September delivery in New York climbed $4.42, or nearly 7 per cent, to $69.53 per ounce. International spot gold closed above $4,620.

Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research at JM Financial Services Ltd, pointed out that the sharp price movement mid-week was ignited by liquidity measures announced by the US Treasury Department to double down on its buyback of longer-dated bonds.

Looking ahead, market participants are keeping a close watch on key economic triggers. US Core Personal Consumption Expenditures (PCE) inflation and Gross Domestic Product figures are expected to heavily influence bullion trends. Additionally, developments surrounding West Asia geopolitics—specifically the US-Iran peace deal and the reopening of the Strait of Hormuz—will remain in focus.

Traders are also tracking upcoming events such as the Jackson Hole symposium, scheduled for August 27-29, where Federal Reserve Chair Kevin Warsh is set to deliver his first keynote address.

While analysts maintain a positive bias for the near term, they advise caution regarding potential profit-booking as markets evaluate incoming US inflation data and broader geopolitical developments.

"The recent rally in precious metals highlights how macroeconomic liquidity measures, bond yields, and global geopolitical developments directly influence commodity markets. For businesses and investors navigating volatile economic environments, tracking these broader financial triggers is essential for managing risk and understanding capital allocation trends." — Dr. Shishir Gupta, Founder & CEO, StartupLanes