Mumbai, Aug 10: Silver prices continued their upward momentum in domestic futures trading on Monday, while gold remained firm despite some profit booking after its strong gains in the previous week.
On the Multi Commodity Exchange (MCX), silver gained more than 1 per cent, extending its recent rally amid supportive global cues. Gold prices, meanwhile, edged lower as investors booked profits following the sharp rise seen last week.
Market participants are closely watching upcoming US inflation data for fresh indications on the Federal Reserve’s interest-rate outlook. The data is expected to play an important role in shaping expectations about the timing and pace of any future monetary policy changes.
Expectations of a softer inflation reading could strengthen market hopes for interest-rate cuts, potentially supporting demand for non-yielding assets such as gold and silver.
Bullion prices have also remained supported by ongoing global economic and geopolitical uncertainties, which have encouraged investors to maintain exposure to safe-haven assets.
Silver has attracted renewed buying interest in recent sessions, while gold has remained elevated despite intermittent profit-taking. Market participants said the broader trend in precious metals continues to be influenced by global monetary policy expectations, movements in the US dollar and economic data from the world’s major economies.
Analysts expect volatility to remain in the bullion market as investors assess incoming US economic data and reassess expectations for Federal Reserve policy.
The direction of gold and silver prices in the near term is likely to depend on US inflation figures, currency movements, global interest-rate expectations and developments in international markets.