Gold, Silver Outlook Next Week, MCX Gold Falls 2.65% & Silver Slides 6.2% As US-Iran Tensions, Inflation Data Remain In Focus
· Free Press Journal
New Delhi: Gold and silver prices are expected to stay volatile with a negative bias in the coming week as investors closely watch the US-Iran conflict, crude oil prices and key inflation data from major economies.
Market experts believe these factors will play an important role in deciding the direction of precious metals.
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Geopolitical tensions keep markets nervous
Fresh tensions in West Asia have increased uncertainty in global markets. Iran recently said it struck a vessel travelling on an unapproved route and later announced the closure of the Strait of Hormuz.
Gold & Silver Prices Likely To Stay Under Pressure Next Week Amid US-Iran TensionsThe US Central Command responded with strikes on Tehran, after which Iran targeted American-linked installations in the UAE, Kuwait and Bahrain.
According to analysts, any further escalation could push crude oil prices higher, increase inflation worries and strengthen safe-haven assets such as the US dollar and US Treasury bonds. This could limit gains in gold and silver.
Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research at JM Financial Services Ltd, said gold and silver remain in a corrective phase and markets will continue to track developments in the US-Iran conflict.
Inflation data to remain in focus
Apart from geopolitical developments, investors will closely watch inflation data from India, the US and the European Union for fresh signals on future interest rate decisions by major central banks.
Gold Falls ₹790 To ₹1.52 Lakh, Silver Slips Below ₹2.50 Lakh, Easing Iran Tensions Weigh On Safe-Haven DemandMarkets will also monitor US retail sales, housing data and weekly jobless claims, along with Chinese GDP, industrial production, fixed asset investment, bank lending and trade figures.
Bullion records weekly losses
On the domestic market, MCX gold futures for August delivery declined Rs 3,900, or 2.65 per cent, during the week to close at Rs 1.43 lakh per 10 grams.
MCX silver futures for September delivery dropped Rs 14,746, or 6.2 per cent, to settle at Rs 2.22 lakh per kilogram.
Gold Drops ₹1,100 To ₹1.58 Lakh Per 10 Grams; Silver Falls ₹5,000 Amid Inflation ConcernsInternationally, Comex gold futures slipped 0.3 per cent to USD 4,113.7 per ounce, while silver fell 1.5 per cent to USD 60.16 per ounce.
Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said stronger US dollar, firm crude oil prices and expectations of higher interest rates continued to pressure bullion. He added that investors are using every recovery in prices to book profits, keeping sentiment cautious until stronger global triggers emerge.