Gold and silver prices are expected to extend their gains next week, with investor attention turning to key US economic and inflation data for cues on the Federal Reserve’s monetary policy outlook.

On the domestic market, gold prices on the Multi Commodity Exchange (MCX) gained more than 5% over the past week, while silver rose 4.5%. The upward move has also been reflected in global bullion markets, supported by investor demand amid economic uncertainty.

For jewellery retailers and manufacturers, the continued rise in bullion prices remains a key factor for procurement costs and consumer buying decisions. Recent domestic prices have already reached three-month highs, with gold of 99.9% purity in Delhi rising to ?1.635 lakh per 10 grams on August 21.

Analysts expect the near-term direction of precious metals to remain linked to US economic indicators, particularly data that could influence expectations around interest rates. Softer US data has previously supported gold by reducing expectations of higher rates and putting pressure on the dollar.

However, the sharp weekly gains could also encourage profit-booking at elevated levels. Gold’s broader trend remains positive, while silver is also maintaining an upward bias, according to recent market assessments.

The combination of US data, currency movements, interest-rate expectations and geopolitical developments is likely to remain central to bullion price movements in the coming week.