Mumbai, Nov 8 (IANS) Gold and silver prices are expected to remain volatile in the coming week as investors closely monitor geopolitical developments, crude oil price movements and key inflation data from major economies.
Uncertainty surrounding tensions between the United States and Iran, along with expectations about the future direction of global interest rates, is likely to influence investor sentiment in the bullion market.
Investors will focus on inflation figures from China, the United States, Germany, Japan and India to assess the outlook for monetary policy.
US labour market data and comments from Federal Reserve officials will also be closely watched for clues about the timing of potential interest rate adjustments.
Geopolitical developments in the Middle East are expected to remain a major driver of precious metal prices. US President Donald Trump has confirmed further military strikes against Iran while indicating that significant progress has been made in negotiations with Tehran.
This has created uncertainty among investors over whether tensions will escalate further or diplomatic efforts will lead to a possible resolution.
Apart from the US-Iran situation, developments in Russia-Ukraine peace negotiations will also remain on investors’ radar.
According to market analysts, the direction of these geopolitical developments could significantly influence demand for safe-haven assets such as gold and silver.
In the domestic market, gold futures for December delivery on the Multi Commodity Exchange (MCX) gained Rs 3,682, or nearly 3 per cent, during the previous week to close at Rs 1.42 lakh per 10 grams.
Silver futures also recorded gains, rising Rs 5,655, or 3.15 per cent, to settle at Rs 1.84 lakh per kilogram.
International markets witnessed a stronger recovery. December gold futures on COMEX advanced $176, or 4.5 per cent, over the week to close at $4,074.90 per ounce. Silver futures climbed $2.60, gaining 5.4 per cent to settle at $51.94 per ounce.
Market experts attributed the initial weakness in bullion prices to stronger-than-expected US nonfarm payroll data and improving consumer sentiment.
These developments strengthened the US dollar and pushed Treasury yields higher, putting pressure on precious metals.
However, gold and silver recovered sharply during the middle of the week as investors returned to lower price levels through bargain buying and short-covering.
(IANS)
