Gold prices are expected to remain within their range next week as investors track key central bank meetings, developments in US-Iran negotiations and crude oil price movements, analysts told news agency PTI.Market participants will be closely monitoring policy decisions by the Bank of Japan, the US Federal Reserve and the Bank of England, along with inflation readings from the UK, Eurozone, Germany and Japan for clues about the outlook for global interest rates.Analysts said that the fate of the proposed US-Iranian agreement will remain one of the most important drivers for bullion markets.He added: “The final touches to the US-Iranian agreement will remain closely monitored.
If signed, we could see an extended rally in risk assets that could lift gold and silver as well. However, any escalation will be negative for the markets,” said Pranav Mir, EBG vice president of commodities and currency research at JM Financial Services Ltd, as quoted by PTI.Domestically, gold futures for August delivery on the Multi Commodity Exchange (MCX) fell by Rs 5,066, or 3.2%, during the week to settle at around Rs 1.50 lakh per 10 gram.
Silver futures for July delivery fell by Rs 2,351, or nearly 1%, to Rs 2.46 lakh per kg.“Gold prices fell sharply, falling over 3 per cent and testing the Rs 1,48,000 per 10 gram level on the MCX index,” said Jatin Trivedi, Vice President, Research Analyst, Commodities and Currencies at LKP Securities.According to Trivedi, gold remained volatile during the week, as easing concerns in energy markets and uncertainty over US-Iran negotiations weighed on prices.However, sentiment later improved after reports indicated that there would be no immediate military action against Iran, triggering safe haven buying and helping precious metals recover part of their losses.Global signals and the G7 summit in focusIn international markets, gold futures on the Comex fell $126.5, or nearly 3%, during the week to close at $4,238.8 per ounce. Silver fell $1.13, or 1.6%, to $67.97 an ounce.Mir said that gold recovered some of its losses near the end of the week, with prices rebounding more than 5% after the decline of the US dollar and a decline in bond yields amid reports of the possibility of signing a US-Iranian peace agreement soon.However, he warned that uncertainty will continue until the two sides formally sign the agreement.He added that ongoing liquidation by exchange-traded fund investors and expectations of a higher interest rate environment at least through the first half of 2027 also weighed on bullion prices.Investors will also be watching the G7 summit in France, where leaders including Prime Minister Narendra Modi are expected to discuss conflicts in Iran and Ukraine, for further signals on the near-term direction of precious metals, analysts said.