Market participants are expected to track inflation data from China, Germany and the US, along with GDP figures from the Eurozone and the UK later this week.“Gold price momentum appears to be holding, while silver action looks positive in the coming week as traders will once again focus on progress in US-Iran peace talks to end the war and markets are likely to react accordingly,” Pranav Mir, Vice President, EBG – Commodity and Currency Research at JM Financial Services, told news agency PTI.On the Multi Commodity Exchange (MCX), gold futures rose by Rs 1,178, or nearly 1 per cent, over the past week to settle at Rs 1.52 lakh per 10 gram.Silver prices rose by Rs 10,985, or 4.4 per cent, to close at Rs 2.61 lakh per kg.
Gold is supported by a weak dollar and lower bond yields
According to Jatin Trivedi, Vice President Research Analyst – Commodities & Currencies at LKP Securities, gold traded at a “positive level” during the week.“The decline in US Treasury yields and the weakness of the dollar index also helped gold remain stable despite the volatility in global markets,” he said.
In the international market, gold futures on Comex rose nearly 2 percent during the week to settle at $4,730.7 an ounce, while silver advanced 5.8 percent to $80.86 an ounce.Mir said bullion prices remained largely flat during the week, supported by a weak US dollar and reports indicating progress in efforts to end the US-Iran conflict.He added that silver recorded gains for the second week in a row, supported by rising copper prices, concerns about supplies, and a weak dollar.
Geopolitical tensions continue to impact bullion
According to PTI, analysts said precious metal prices turned range-bound on Friday after renewed tensions in the Persian Gulf limited gains.The report indicated that US and Iranian forces clashed in the region, while the United Arab Emirates was also subjected to new attacks. But US President Donald Trump later said that “the ceasefire is still holding,” which helped calm the markets.Continued central bank buying and new inflows into global exchange-traded funds also supported gold prices, the World Gold Council said.Analysts added that markets will also be watching Trump’s expected visit to China and the US Senate’s vote on Federal Reserve Chairman nominee Kevin Warsh in the coming days.
