Bullion market: What will guide gold, silver prices this week?
Gold and silver prices are expected to trade within a narrow range this week. Investors await key US economic data, especially non-farm payrolls, for Fed policy direction. Purchasing managers' index data from major economies will also be closely monitored. Developments concerning the US-Iran conflict and crude oil supplies will influence sentiment. Analysts anticipate gold to trade between Rs…
This week's gold and silver prices are expected to fluctuate within a narrow range as investors eagerly await crucial economic data, notably the US non-farm payrolls report. Analysts also keep tabs on Purchasing Managers' Index (PMI) data from various countries, including the US, UK, Eurozone, and Japan. The July employment figures, comprising non-farm payrolls and unemployment rate, are closely scrutinized.
US-Iran tensions and the reliability of crude oil supplies via significant shipping routes also impact market sentiment. Jateen Trivedi, VP Research Analyst at LKP Securities, stated that MCX gold is projected to remain within a tight range in the short term, with MCX gold likely to fluctuate between Rs 1.40-1.44 lakh per 10 grams in the near term. The direction will depend on US macroeconomic data and evolving expectations regarding the Fed's policy trajectory.
Gold and silver both experienced declines last week. On the Multi Commodity Exchange, August gold futures fell by Rs 1,595, or 1.1%, to close at Rs 1.41 lakh per 10 grams, while September silver futures dropped by Rs 4,940, or 2.2%, to settle at Rs 2.17 lakh per kilogram. Trivedi noted that despite a weaker US dollar and a sharp decline in crude oil prices, gold failed to attract substantial buying, indicating investor caution.
On the global stage, Comex gold futures for October delivery closed slightly lower at $4,076.6 per ounce, whereas silver futures for September delivery fell nearly 2% over the week, closing at $57.78 per ounce in New York. Trivedi highlighted that uncertainty surrounding the Federal Reserve's interest rate outlook continues to exert downward pressure on bullion prices, as policymakers have not provided a clear timeline for future policy moves.
In addition to the US jobs data, investors will also monitor Federal Reserve officials Lisa D Cook and Thomas Barkin's speeches. Furthermore, China's trade data, encompassing exports, imports, Consumer Price Index, and Producer Price Index, will provide further insights into the global economy and bullion prices.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
