Bullion Prices Set for Wild Ride as Fed Decision Looms and US-Iran Tensions Rise

Market sentiment for bullion is set to be driven by several key factors this week. The Federal Reserve's interest rate decision on July 29, US Consumer Confidence data, and developments in the US-Iran geopolitical situation will all have a significant impact on gold and silver prices.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, noted that market sentiment will continue to be driven by these factors. 'Market sentiment will continue to be driven by developments in the US-Iran geopolitical situation, the direction of crude oil prices, and their impact on inflation expectations ahead of the US Federal Reserve's policy decision on July 29,' he said.

On the domestic front, gold futures for August delivery rose Rs 2,200 or 1.6% to close at Rs 1.43 lakh per 10 grams last week, while silver futures for September delivery gained Rs 5,735 or 2.7% to Rs 2.22 lakh per kilogram.

Globally, Comex gold futures for August delivery advanced USD 52 or 1.3% to settle at USD 4,070.8 per ounce and silver for the September contract rose USD 3 or nearly 5% to USD 58.90 per ounce in New York.