Bullion Prices Hang in the Balance Amid US Fed Decision, Oil Prices, and West Asia Tensions

Gold and silver prices are expected to remain volatile this week as investors closely watch key events. The US Federal Reserve's interest rate decision, oil prices, and ongoing tensions in West Asia will be crucial indicators of bullion prices.

The Fed's policy meeting is the biggest event for bullion markets this week, with traders paying close attention not only to the interest rate decision but also to the Fed's outlook on inflation, economic growth, and future rate cuts. Additionally, markets will 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.

Analysts believe that 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.