Analysts said the outcome of the talks could impact global risk sentiment and energy markets, with a direct impact on bullion prices.
Gold and silver prices are expected to remain driven by developments in the US-Iran negotiations, crude oil price movements and a busy global macroeconomic calendar in the coming week, analysts told news agency PTI.Market participants will closely monitor the talks scheduled in Bürgenstock, Switzerland, where US Vice President J.D. Vance is expected to lead discussions with Iranian officials following the framework agreement reached last week aimed at ending hostilities and reviving nuclear negotiations.Analysts said the outcome of the talks could impact global risk sentiment and energy markets, with a direct impact on bullion prices.Local commodity markets will remain closed during the morning session on Friday on the occasion of Muharram.“The momentum for gold and silver looks sideways/corrective, as the focus will remain on the negotiations between Washington and Tehran and also on the flow of crude oil, LNG and raw materials from the Strait of Hormuz,” said Pranav Mir, EBG Vice President of Commodity and Currency Research at JM Financial Services Limited.
Precious metals ended last week lower amid a stronger rupee and declining safe-haven demand.On the Multi Commodity Exchange (MCX), gold futures fell by Rs 3,325, or 2.2%, to settle at Rs 1.47 lakh per 10 gram. Silver futures fell by Rs 13,001, or 5.3%, to close at Rs 2.33 lakh per kilogram.“Gold remained under pressure throughout the week, ending around 2.2% lower, as the precious metal faced headwinds from a combination of lower energy prices, a stronger Indian rupee, and a hawkish policy stance from the US Federal Reserve,” said Jatin Trivedi, vice president research analyst for commodities and currencies at LKP Securities.He added that a stronger rupee reduces the downside cost of imported gold, creating additional pressure on precious metal prices.In global markets, gold futures rose on Comex to close the week at US$4,245.9 per ounce, while silver fell 2.03% to US$66.32 per ounce in New York.Mir said that bullion continued its corrective phase as global gold and silver prices were affected by a decline due to the strength of the US dollar, with the dollar index closing around 100.60.He said that while the Russian-Ukrainian conflict continued to provide some support for safe haven demand, investor attention remained focused on developments in West Asia.Meanwhile, Iran said it had closed the Strait of Hormuz after new Israeli strikes in Lebanon, although US Central Command disputed that claim and said shipping through the strategic waterway was continuing uninterrupted.The US-Iranian framework signed last week set a 60-day deadline for negotiators to reach an agreement on technical details, making the upcoming talks a major event for commodity markets.Aside from geopolitical developments, investors will track the People’s Bank of China’s policy decision on Monday, manufacturing and express services PMI data from major economies, US housing data, personal consumption expenditures (PCE) inflation numbers, and consumer confidence readings.Comments from Federal Reserve officials will also be closely watched for signals about the path of future interest rates and their impact on bullion prices.