Gold prices likely to remain firm as traders await Fed’s decision: Analysts

New Delhi: Gold prices are likely to remain firm in the coming week, driven by investor focus on the US Federal Reserve’s monetary policy outcome, combined with weakness in the rupee, according to analysts.

The precious metal’s bias remains positive amid expectations of an interest rate cut and sustained central bank purchases, they added.

On the MCX, gold futures appreciated by Rs 958, or 0.74 per cent, this week, outperforming the global prices.

In the international markets, Comex gold futures slipped by $11.9, or 0.28 per cent, during the week.

Meanwhile, silver continues to outshine gold, scaling fresh record highs on industrial demand.

On the MCX, silver futures skyrocketed by Rs 8,427, or 4.81 per cent, during the week. On Friday, the white metal surged by Rs 7,096, or 3.98 per cent, to hit a record of Rs 1,85,234 per kilogram.

“In the first half of the week, silver futures spiked close to Rs 1.80 lakh per kg and briefly touched fresh highs. Since then, prices have cooled off slightly but are still sitting on massive month-on-month gains,” Chirag Doshi, CIO- Fixed Income, LGT Wealth India, said.

He added that markets are consolidating at higher levels after a strong run, with traders increasingly using sharp intraday spikes in silver as opportunities to book profits.

In the overseas markets, Comex silver futures rose by $1.89, or 3.30 per cent, during the week. On Friday, the metal soared by $2.4, or 4.19 per cent, to hit a lifetime high of $59.90 per ounce. Analysts said the coming week will be crucial for bullion prices as monetary policy cues from the Fed, macroeconomic data from China and the US, and rupee trends will guide direction.