Gold and Silver Expected to Remain Range-Bound for Second Week as US-Iran Talks Unfold, Say Analysts

As gold and silver exhibit range-bound trading for a second consecutive week, analysts suggest that investor sentiment is predominantly influenced by ongoing US-Iran peace negotiations and key global macroeconomic indicators. This week, traders are set to closely monitor inflation data releases from China, Germany, and the United States, alongside GDP figures from the Eurozone and the United Kingdom. Pranav Mer, Vice President of EBG – Commodity & Currency Research at JM Financial Services Ltd, highlighted that while gold’s momentum appears to be consolidative, silver shows a more positive trajectory as market stakeholders remain focused on the outcomes of the US-Iran talks regarding the potential resolution of the ongoing conflict.

Recent market data reveals that on the Multi Commodity Exchange (MCX), gold futures experienced an increase of Rs 1,178, or nearly 1%, closing at Rs 1.52 lakh per 10 grams. Similarly, silver exhibited a robust climb, gaining Rs 10,985, or 4.4%, to reach Rs 2.61 lakh per kg. Jateen Trivedi, VP Research Analyst at LKP Securities, noted that the correction in crude oil prices and improvements in geopolitical risk sentiment have positively influenced bullion markets. Lower US Treasury bond yields and a depreciating dollar index have further contributed to gold’s stability amidst volatile global markets, reinforcing a cautious yet optimistic outlook for precious metals.

Internationally, Comex gold futures advanced nearly 2% to close at USD 4,730.7 per ounce, while silver surged by 5.8%, ending at USD 80.86 per ounce. Analysts attribute the supportive environment for gold prices to ongoing central bank purchases and renewed inflows into global exchange-traded funds. However, Friday’s trading revealed that gains were restrained due to heightened tensions in the Persian Gulf, following clashes between US and Iranian forces. With impending developments such as US President Trump’s anticipated visit to China and pending Senate decisions on the new Federal Reserve Chairman nominee, market participants will remain vigilant, particularly regarding domestic inflation, trade figures, and currency fluctuations that could further impact bullion prices in the upcoming week.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)