Gold traded higher during the week, gaining 1 per cent, with the rally extending beyond 2 per cent at its peak before profit-booking emerged at higher levels, according to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, as reported by The Times of India. On the Multi Commodity Exchange (MCX), the October gold contract climbed Rs 2,686, or nearly 2%, to close at Rs 1.54 lakh per 10 grams, while the September silver contract gained Rs 4,458, or 1.9%, to settle at Rs 2.35 lakh per kilogram.
Weekly price action
Gold futures recorded a strong weekly gain on MCX, with the October contract rising to Rs 1.54 lakh per 10 grams, The Times of India reported. Silver's September contract on MCX ended the week at Rs 2.35 lakh per kg after adding Rs 4,458. Trivedi said gold traded higher during the week, gaining 1%, with the rally extending beyond 2% at its peak before profit-booking emerged at higher levels.
What drove the move
The weekly movement came after gold had recorded a strong run in domestic markets. Trivedi noted that MCX gold had gained nearly 9.5% in August, with the substantial monthly rise making consolidation and intermittent profit-booking at higher levels more likely in the near term. Despite profit-booking, gold retained its positive bias.
For silver, the price gain was linked to developments in the broader industrial metals segment, where the recent rally had paused, according to analysts quoted in the report. Analysts said gold and silver prices were expected to retain a positive outlook, although elevated volatility was likely to continue amid developments in the Middle East and the release of key global economic data. Market participants would closely track developments in the region along with economic indicators from major economies, the report said.
Analyst projections
Pranav Mer, Senior Vice President, EBG – Commodity & Currency Research at JM Financial Services Ltd, said gold and silver were expected to move higher. He projected gold prices towards Rs 1.57 lakh per 10 grams and silver towards Rs 2.54 lakh per kg. The assessment came against the backdrop of recent gains in both precious metals in domestic and international markets.
| Contract | Weekly change | Closing price | Analyst target |
|---|---|---|---|
| MCX Gold October | +Rs 2,686 (+2%) | Rs 1.54 lakh / 10 g | Rs 1.57 lakh / 10 g (JM Financial) |
| MCX Silver September | +Rs 4,458 (+1.9%) | Rs 2.35 lakh / kg | Rs 2.54 lakh / kg (JM Financial) |
Trading implications
With MCX gold up nearly 9.5% in August and silver consolidating after its rally, traders face a market where a positive bias coexists with profit-booking risk, according to Trivedi's assessment. The near-term path for bullion hinges on Middle East developments and key global economic data, which analysts said could keep volatility elevated. JM Financial's projections imply further upside of roughly 2% for gold and about 8% for silver from the weekly closing levels cited in the report. The domestic silver market remained closely watched alongside gold as both precious metals posted weekly gains.
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