Next week, gold prices will be affected by developments in peace negotiations between the United States and Iran, movements in crude oil prices and a series of macroeconomic data releases. US Federal Reserve officials’ speeches could also play a key role in shaping interest rate expectations, which in turn may guide the near-term direction of bullion prices, analysts said.“The momentum of precious metals like gold and silver still looks sideways towards a correction,” Pranav Mir, vice president, EBG – Commodity and Currency Research, JM Financial Services Ltd, told PTI.He also noted that attention will remain focused on progress in peace talks between the United States and Iran, with the ceasefire and negotiation timeline extended for another 60 days. He said that the positive result may further affect oil and gold prices with weak demand for safe havens.On the Multi Commodity Exchange (MCX), gold futures fell by Rs 3,104, or nearly 2%, to close the week at Rs 1.55 lakh per 10 gram. Silver also fell by Rs 4,848, or 1.8%, ending the week at Rs 2.66 lakh per kg.In offshore trade, Comex gold futures rose marginally to settle at $4,593 an ounce, while silver fell to $75.87 an ounce.According to Mir, gold has remained under pressure in recent weeks due to a sharp decline in crude oil prices and a decline in safe-haven demand following reports of progress in peace talks between the US and Iran.
He added that officials from both sides referred to a preliminary draft of the proposed agreement, although it is still awaiting the approval of US President Donald Trump.Analysts said the gains in precious metals were capped by a strong rebound in global stocks, liquidations in exchange-traded funds (ETFs), and a lack of new bullish catalysts.Meanwhile, persistent concerns about persistent inflation continue to fuel expectations of a hawkish stance from major global central banks, limiting the appeal of assets such as gold.They added that downward pressure in bullion was partially offset by bargain buying at lower levels, sustained demand amid escalating tensions between Russia and Ukraine, and a stable US dollar.Analysts also said that gold and silver enter the new week as investors closely monitor the health of the US economy and labor market, as a busy schedule of data releases could strongly influence the Fed’s interest rate outlook.(Disclaimer: Recommendations, opinions regarding 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)