Gold and silver prices are expected to remain range-bound for the second consecutive week as investors closely monitor developments in US-Iran peace negotiations and key global macroeconomic data, according to analysts.
Key Data to Watch
Market participants are set to track inflation data from China, Germany, and the United States, along with GDP figures from the Eurozone and the United Kingdom later this week. These indicators could provide direction for precious metals.
Pranav Mer, Vice President of EBG - Commodity & Currency Research at JM Financial Services, told PTI: "Gold prices momentum looks consolidative, while silver movement looks positive in the coming week as traders will focus again on the progress on peace talks between the US and Iran to end the war. Markets are likely to react accordingly."
Weekly Performance on MCX
On the Multi Commodity Exchange (MCX), gold futures rose by Rs 1,178, or nearly 1 percent, over the past week to settle at Rs 1.52 lakh per 10 grams. Silver prices surged by Rs 10,985, or 4.4 percent, closing at Rs 2.61 lakh per kilogram.
Gold Supported by Weaker Dollar and Lower Bond Yields
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, gold traded with a "positive undertone" during the week. "Lower US Treasury bond yields and a softer dollar index also helped gold remain stable despite volatility across global markets," he said.
In the international market, Comex gold futures climbed nearly 2 percent during the week to settle at $4,730.7 per ounce, while silver advanced 5.8 percent to $80.86 per ounce.
Mer noted that bullion prices remained largely steady through the week, supported by a weaker US dollar and reports suggesting progress in efforts to end the US-Iran conflict. Silver recorded gains for the second consecutive week, aided by higher copper prices, supply concerns, and dollar weakness, he added.
Geopolitical Tensions Continue to Influence Bullion
According to PTI, analysts said precious metal prices turned range-bound on Friday after renewed tensions in the Persian Gulf capped gains. The report noted that US and Iranian forces clashed in the region, while the United Arab Emirates also came under fresh attacks. However, US President Donald Trump later stated that "a ceasefire was still holding," which helped calm markets.
The World Gold Council stated that continued central bank buying and fresh inflows into global exchange-traded funds also supported gold prices.
Analysts added that markets would also keep an eye on Trump's expected China visit and the US Senate vote on Federal Reserve Chair nominee Kevin Warsh in the coming days.
