Fed, crude, dollar and Iran war: 4 factors that could move gold next week

Gold and silver prices are expected to remain volatile next week, influenced by several key factors according to analysts. The US Federal Reserve's interest rate decision during its September 15-16 meeting, along with Chair Kevin Warsh's commentary, will be particularly important in determining market sentiment regarding precious metals.

In addition to the Fed's policy decision, movements in crude oil prices, the US dollar, inflation expectations, and geopolitical developments, including tensions in the US-Iran conflict, will also impact the gold market. The US Federal Reserve's meeting is expected to set the tone for bullion markets, with any moderation in crude prices or a less hawkish stance by the Fed potentially leading to a recovery in gold.

Conversely, renewed strength in crude oil or a hawkish policy signal could trigger further selling. In the domestic market, gold futures for October delivery rose by Rs 17 to Rs 1,52,784 per 10 grams, while silver declined by Rs 2,684, or 1.13%, to settle at Rs 2.34 lakh per kilogram. On the global front, Comex gold futures for December delivery dropped by 1.5% to USD 4,408.9 per ounce, while silver declined by 2.34% to USD 65.19 per ounce.

The mixed trend in the domestic market was partly capped by a sharp fall in the rupee. Investors will also closely monitor monetary policy decisions from the Bank of England and Bank of Japan, following the Fed's decision. Markets will keep an eye on inflation data from various countries, including India, Germany, the UK, the eurozone, the US, and Japan. China's investment and factory activity data will also be crucial for industrial metals.