Gold prices are expected to hold their gains but may witness some consolidation as investors await the outcome of the US Federal Reserve’s policy meeting on September 17, analysts said.Traders will also track inflation data from major economies including the UK and Euro zone, along with policy decisions by the Bank of England and Bank of Japan, which are likely to provide further cues for bullion.“Gold prices continued their positive momentum and closed higher for the fourth straight week, however, the pace of upward momentum slowed with some consolidation seen during mid-week. The price moves of more than 10 per cent over the past four weeks has pushed investors on the back foot as they are reluctant to add fresh longs at current prices,” said Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services, PTI quoted.He added that geopolitical developments in the Middle East, Russia-Ukraine conflict, and political shifts in Europe and Asia are keeping bullion supported.On the Multi Commodity Exchange (MCX), the most traded gold futures for October delivery rose Rs 1,616 or 1.5 per cent. In international trade, Comex gold futures closed at $3,686.40 per ounce, before scaling $3,715.20 on September 9.“The rally is not surprising, taking into consideration the effective tariffs of 50 per cent imposed on Indian imports into the US combined with the continued escalation of the Russia-Ukraine conflict in recent weeks,” said Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies, Angel One.Riya Singh, Research Analyst at Emkay Global Financial Services, said, “Gold extended its powerful rally through the week, moving from already elevated levels to fresh record highs as shifting macroeconomic conditions reinforced its safe-haven appeal.”She noted that gold has surpassed its inflation-adjusted 1980 peak, crossing $3,700 an ounce, with a year-to-date gain of more than 40 per cent. Institutional demand, led by central banks in emerging markets, has cushioned the market against weak jewellery sales in India and China, she added.According to Singh, a sustained breach above current levels could pave the way toward the $4,000 mark on Comex and Rs 1,15,000 per 10 grams on MCX later this year.Silver mirrored gold’s bullish run with sharper gains. Comex silver futures rose 1.62 per cent to $42.83 per ounce, hitting an intraday high of $43.04. On the MCX, silver futures surged to a lifetime high of Rs 1,29,392 per kilogram.“Silver outperformed gold on a percentage basis, highlighting its higher beta during risk-on phases for precious metals. Last week, silver marked its highest level since 2011 and recorded a year-to-date gain of nearly 40 per cent,” Singh told PTI, adding that ETF inflows into silver have crossed 1.13 billion ounces worth more than $40 billion.While silver’s industrial use in manufacturing and renewable energy provides long-term support, its price remains more volatile than gold, she said. “A medium-term advance toward $43 per ounce on Comex and Rs 1,35,000-1,38,000 per kilogram on MCX is possible should momentum hold,” Singh added.Analysts said that despite the possibility of near-term consolidation, the broader trend for precious metals remains firmly upward, driven by central bank purchases, safe-haven demand and expectations of policy easing by global central banks.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
