Gold and silver prices brace for more swings this week,with U.S.-Iran tensions heating up, oil prices on the move,and new inflation data looming. All eyes on how these will tweak global interest rate expectations .
The latest flare-up kicked off when Iran hit a ship outside approved routes. Then, Iran shut the Strait of Hormuz, vital for oil shipments worldwide. The U.S. Central Command hit back at Iranian targets,sparking Iran to strike sites tied to the U.S. in UAE,Kuwait,and Bahrain.
More conflict could spike oil prices,stoking inflation fears and boosting the U.S. dollar and Treasury yields. That might cap any gains for precious metals . Pranav Mer from EBG - Commodity & Currency Research said, "For gold and silver, momentum is still down and corrective. Focus will shift back to the US-Iran conflict . Any big escalation would push oil prices higher and strengthen safe-haven assets like US dollar and Treasury bond yields."
At home, MCX gold futures for August dropped ₹3,900, or 2.65%,to ₹1.43 lakh per 10 grams. Silver's September contract fell ₹14,746,or 6.2%,to ₹2.22 lakh per kg. Jateen Trivedi of LKP Securities noted gold had another dull week,down over 2% due to a stronger U.S. dollar, rising oil prices,and higher interest rate expectations.
Gold and silver struggled to hold onto gains,with each rise triggering profit-taking. Trivedi said the Indian rupee's slight correction gave limited support to MCX gold, but a bearish global mood kept gold in a corrective phase .
Globally, Comex gold futures slipped $12,or 0.3%,to $4,113.7 per ounce, while silver dropped 1.5%,closing at $60.16 per ounce. Experts are watching key U.S. data points like retail sales,housing numbers,and jobless claims for clues on Federal Reserve policy .
China's economic numbers — GDP, industrial production,and more — are also in the spotlight,as they could sway industrial metals,which have shown signs of life recently. Mer pointed out that bullion's failure to hold gains reflects a cautious market,with investors booking profits instead of going bullish .
He wrapped up saying,"Unless there's a big shift in geopolitical or economic news,sentiment stays cautious until stronger triggers appear." As things unfold, everyone will be watching how these factors shape precious metals scene...
