Gold prices edged lower in international trade on Monday, as persistent inflation concerns and a hawkish stance from the US Federal Reserve weighed on the precious metal. Investors remained focused on the latest developments in US-Iran peace discussions, which could influence safe-haven demand. Meanwhile, silver prices saw a modest uptick, while platinum and palladium showed mixed movements.
Gold and Silver Outlook for the Week
Analysts expect gold and silver to experience range-bound movements this week, with market participants closely watching a packed calendar of global economic data. Key releases include PMI data, US labour market figures, and non-farm payroll numbers, which could provide fresh signals on interest rates and bullion demand. Geopolitical developments, particularly any progress in US-Iran talks, are expected to drive sentiment. Currency movements, especially the rupee's strength, will also play a critical role in domestic gold prices.
Gold Prices Today
Spot gold was trading 0.3 per cent lower at $4,599.45 an ounce as of 0114 GMT. US gold futures for June delivery fell 0.7 per cent to $4,611.40 an ounce. The decline came as uncertainty over US interest rates persisted, with the Fed maintaining a hawkish stance and dampening expectations of rate cuts this year.
Silver and Other Precious Metals
Spot silver rose 0.1 per cent to $75.38 an ounce, while platinum advanced 0.2 per cent to $1,991.85. Palladium, however, declined 0.3 per cent to $1,519.66 an ounce. In the futures market, gold speculators increased their net long positions by 3,924 contracts to 91,574 in the week ended April 28.
Factors Influencing the Bullion Market
US Federal Reserve Policy
Last week, the US Federal Reserve left benchmark interest rates unchanged while maintaining a hawkish stance, effectively reducing market expectations of any rate cuts this year. Elevated crude prices could prompt central banks to keep borrowing costs higher for a longer period, which tends to weigh on non-interest-bearing assets like gold as investors may shift towards yield-generating alternatives such as US Treasuries.
Geopolitical Tensions
US President Donald Trump announced that Washington would begin efforts to assist ships stranded in the Strait of Hormuz, describing the move as a humanitarian step aimed at helping neutral nations affected by the US-Israeli conflict with Iran. According to Iranian state media, the United States has communicated its response to Tehran’s 14-point proposal through Pakistan, and Iranian authorities are currently evaluating it. Oil prices retreated modestly but remained above $100 a barrel, as uncertainty surrounding a possible US-Iran agreement persisted.
Domestic Gold and Silver Market
In India, gold demand remains uneven as sharp price swings and a weaker rupee kept many buyers on the sidelines. Political developments, including upcoming state election results, may also influence the rupee and broader market sentiment, potentially adding to short-term volatility in precious metals. On the MCX, gold futures fell nearly 1 per cent over the past week to settle at Rs 1.51 lakh per 10 grams, while silver outperformed, rising Rs 879 to close at Rs 2.50 lakh per kilogram.
Current Domestic Rates
- 22K gold per gram: Rs 13,850
- Silver per 10 grams: Rs 2,650
- Platinum per 10 grams: Rs 60,550
Market Sentiment and Outlook
Gold largely moved within a limited range last week before ending lower, though it recovered from its lows as declining crude oil prices eased inflation concerns and offered support to bullion. Internationally, Comex gold dropped 2.03 per cent during the week, while silver in New York slipped nearly 1 per cent. The pressure on bullion stemmed from improved investor appetite for riskier assets such as equities, as well as lingering concerns among central banks about inflation due to elevated crude prices. ETF investors also remained net sellers, reflecting cautious sentiment.
Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
