Dollar, Bond Yields, and Iran Tensions to Shape Precious Metals Prices

Gold and silver prices are expected to remain volatile this week due to various factors. The US dollar, bond yields, and unresolved tensions between the US and Iran will shape the outlook for precious metals.

Investors will also track the Reserve Bank of India's monetary policy decision on Wednesday, with markets expecting a 25-basis-point rate hike.

Last week, bullion prices ended sharply lower due to a stronger US dollar and rising bond yields. On the MCX, December gold futures fell Rs 2,887, or 2 per cent, to close at Rs 1.5 lakh per 10 grams, while silver futures declined Rs 8,819, or nearly 4 per cent, to Rs 2.25 lakh per kg.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, the decline was due to profit-booking across bullion and other asset classes. Trivedi noted that gold had initially found support from softer US employment data, but that support faded as investors moved to lock in gains.