Mumbai: Gold and silver are set for a volatile week as the US Federal Reserve’s policy decision, crude oil prices and escalating West Asia tensions steer bullion sentiment.
The Fed decision will be the key global trigger, with its policy signals expected to shape the next move in precious metals.
Fed Takes Centre Stage
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said gold would remain highly sensitive to Fed commentary, crude oil movements, the dollar, inflation expectations and geopolitical developments.
A moderation in crude prices or a less hawkish Fed stance could help gold recover. However, renewed strength in oil or hawkish policy signals could trigger fresh selling.
Commodity markets will remain closed during Monday’s morning session due to Ganesh Chaturthi.
Gold Steady, Silver Slips
In the domestic market last week, gold futures for October delivery edged up ₹17 to ₹1,52,784 per 10 grams. Silver, however, fell ₹2,684, or 1.13%, to ₹2.34 lakh per kilogram.
Global bullion remained under pressure. Comex gold futures for December delivery declined 1.5% to $4,408.9 an ounce, while silver dropped 2.34% to $65.19 an ounce.
Pranav Mer, Senior Vice President, EBG – Commodity & Currency Research at JM Financial Services, said gold swung between gains and losses before ending the week 1.5% lower. A sharp fall in the rupee limited losses in the domestic market.
Crude Adds To Volatility
Crude oil ended the week above $100 a barrel amid escalating West Asia hostilities, adding uncertainty to bullion prices.
Investors will also monitor policy decisions from the Bank of England and Bank of Japan, alongside inflation readings from major economies.
Crude oil and geopolitical tensions could keep bullion volatile, while the Fed’s policy signals may determine the next direction for gold and silver.
