New Delhi: Gold and silver markets could face another volatile week after a sharp correction in bullion prices, with investors turning their attention to US jobs data, Federal Reserve expectations and geopolitical tensions involving Iran.
Gold suffered heavy losses last week, while silver also witnessed significant selling pressure across domestic and international markets.
Gold Loses Over ₹6,000
Gold futures for October delivery on the Multi Commodity Exchange (MCX) declined ₹6,157, or 3.8 per cent, during the week to around ₹1.56 lakh per 10 grams.
Prices had fallen from around ₹1.63 lakh, resulting in a negative weekly closing of more than 3 per cent.
Silver futures for September delivery dropped ₹9,893, or 4 per cent, to around ₹2.36 lakh per kilogram.
Selling intensified on Friday following US Federal Reserve Chair Kevin Warsh’s comments on inflation and monetary policy, prompting profit booking across bullion markets.
Global Bullion Prices Decline
In international markets, Comex gold futures for December delivery fell $150.70, or 3.2 per cent, during the week to settle at $4,680.60 per ounce.
Silver futures declined $2.56, or 3.64 per cent, to $67.78 per ounce.
Despite the latest correction, silver outperformed gold during August. Silver gained around 21 per cent during the month, compared with a 15.7 per cent rise in gold.
US Jobs Data In Focus
Markets will closely watch US non-farm payrolls, unemployment numbers and ADP employment data for signals on the Federal Reserve’s September policy decision.
Manufacturing and services PMI readings from major economies, including India, will also remain in focus.
Inflation data from the Eurozone and Germany could provide further direction to precious metals.
Iran Tensions Add Uncertainty
Geopolitical developments could amplify price swings, with markets monitoring the US-Iran conflict and developments around the Strait of Hormuz.
Any disruption could influence crude oil prices and inflation expectations.
Analysts said movements in the US dollar, labour-market data, expectations around Federal Reserve policy and geopolitical headlines will determine whether gold stabilises after its sharp correction or faces another round of profit booking.
