Market participants will closely track manufacturing and services PMI data from major economies, Eurozone inflation numbers, US non-farm payrolls numbers and unemployment numbers for new signals on monetary policy.
Gold and silver prices are expected to remain under pressure next week, as investors assess the impact of renewed tensions between the US and Iran, movements in crude oil prices and a series of key global economic data that could influence the US Federal Reserve’s interest rate path, analysts told PTI.Market participants will closely track manufacturing and services PMI data from major economies, Eurozone inflation numbers, US non-farm payrolls numbers and unemployment numbers for new signals on monetary policy.Analysts said geopolitical developments will also remain in focus after negotiations between the United States and Iran faltered following the sharp escalation in the military conflict.
The alloy is still under pressure
“For gold and silver prices, the momentum remains low and corrective,” Pranav Mir, Vice President, EBG – Commodity and Currency Research, JM Financial Services Ltd, was quoted as saying by PTI.On the Multi Commodity Exchange (MCX), gold futures for August delivery fell by Rs 3,041, or 2.06 per cent, during the week to settle at Rs 1.44 lakh per 10 gram. Silver futures for September delivery fell by Rs 15,269, or 6.4 per cent, to Rs 2.23 lakh per kg.“Gold remained under significant selling pressure last week and closed 2 per cent lower, extending its decline on a weekly basis as the strength of the US dollar continued to weigh on the precious metals,” said Jatin Trivedi, Vice President (Research Analyst) Commodities and Currencies at LKP Securities.
He said that crude oil prices corrected sharply by about 10 percent, which eased inflation fears and reduced the attractiveness of gold as an inflation hedge, while investors continued to prefer the US dollar over bullion.
US data, Fed forecasts in focus
In offshore markets, gold futures on the Comex fell $149.6, or 3.5 percent, during the week to close at $4,096.3 an ounce, while silver fell $7.13, or 10.7 percent, to $59.67 an ounce in New York.Gold recovered modestly on Friday after bargain buying emerged following US personal consumption expenditures data, which showed inflation rising at a slower pace than the previous month, Mir said.He added that the Chinese central bank’s continued purchases of gold in the wake of new US-Iranian strikes, along with President Donald Trump’s threat to impose 100 percent tariffs on the European Union, also supported prices.However, rising US Treasury yields capped gains, while silver remained under pressure due to weak industrial metals, a strong dollar and weak demand.Analysts said the direction of bullion prices next week will largely depend on upcoming US macroeconomic data, comments from Federal Reserve officials and US dollar movements.