New Delhi: Gold and silver prices are expected to remain volatile this week as global investors closely watch the US Federal Reserve's interest rate decision, crude oil prices and the ongoing tensions in West Asia.
Analysts said these factors will decide whether bullion prices continue their recent recovery or come under fresh selling pressure.
Fed Decision in Focus
The biggest event for bullion markets this week will be the US Federal Reserve's policy meeting.
While the interest rate decision is important, investors will pay even closer attention to the Fed's outlook on inflation, economic growth and future rate cuts.
Markets will also track US Consumer Confidence, Core Personal Consumption Expenditures (PCE) inflation data, weekly jobless claims and policy decisions by the Bank of England and the Bank of Japan.
Oil Prices and West Asia Risks
Analysts said developments in the US-Iran conflict and shipping activity through the Strait of Hormuz will remain key triggers for bullion prices.
Last week, Brent crude briefly crossed the USD 100 per barrel mark after Houthi attacks on Saudi-owned vessels raised fears of supply disruptions.
However, oil prices later eased as investors booked profits, allowing gold and silver to recover towards the end of the week.
Experts believe any fresh escalation in the region could increase demand for safe-haven assets such as gold.
Bullion Ends Week Higher
In the domestic market, gold futures for August delivery rose Rs 2,200 (1.6 percent) to close at Rs 1.43 lakh per 10 grams last week.
Silver futures for September delivery gained Rs 5,735 (2.7 percent) to settle at Rs 2.22 lakh per kg on the Multi Commodity Exchange.
In global markets, Comex gold climbed USD 52 (1.3 percent) to USD 4,070.8 per ounce, while Comex silver surged nearly 5 percent to USD 58.90 per ounce.
What Traders Will Watch?
Analysts expect gold and silver to trade within a range unless there is a major global trigger.
Apart from the Fed's decision, traders will closely monitor comments from Federal Reserve Chair Kevin Warsh, developments in Iran, shipping through the Strait of Hormuz and continued gold purchases by China's central bank, which remain supportive for bullion prices.
