Fed Decision and Oil Price Swings Set to Test Gold Market

The gold and silver markets are bracing for a crucial week ahead, with several key events set to influence their prices. The US Federal Reserve's interest rate decision is one of the major factors that will determine whether bullion extends its recovery or comes under renewed pressure.

Investors will also be monitoring the release of US Consumer Confidence and Core Personal Consumption Expenditures (PCE) inflation data, as well as weekly jobless claims. These indicators can have a significant impact on gold prices, which tend to move inversely with interest rates and economic growth expectations.

In India, gold futures for August delivery rose 1.6% to close at Rs 1.43 lakh per 10 grams during the last week, while silver futures for September delivery gained 2.7% to Rs 2.22 lakh per kilogram on the Multi Commodity Exchange.

The global market saw significant swings in gold and silver prices after Brent crude briefly reclaimed the $100-per-barrel mark due to Houthi strikes on Saudi-owned vessels, but oil later retreated as investors booked profits.