‘Gold likely to trade firm, silver may remain volatile’

New Delhi: Gold prices are likely to trade firm next week as traders await key economic data, including US inflation numbers, for fresh cues on interest rate outlook, while silver may remain volatile amid shifting risk sentiment and speculative activity, analysts said.

Traders will look for cues from US GDP, PMI, non-farm payroll and inflation data. Also, inflation readings from China, Germany, and India will also be keenly watched. Speeches from US Federal Reserve officials will be closely tracked as well for indications on the timing of potential rate cuts and their impact on bullion prices, they added.

During the past week, gold futures climbed Rs 7,698, or 5.2 per cent, while silver slumped Rs 15,760 or nearly 6 per cent on the Multi Commodity Exchange.

In the international market, gold gained $234.7, or nearly 5 per cent, over the past week on the Comex, recovering to $5,000 per ounce from a low of $4,400 per ounce.

However, silver futures remained under pressure, slipping $1.63, or 2.08 per cent.

Analysts said that macroeconomic data and remarks from Fed officials are poised to dominate next week’s agenda, traders expect continued volatility but see opportunities for short-term buying on dips, especially in gold.