Fed Decision and Oil Volatility Set to Dictate Gold and Silver Prices

The US Federal Reserve's interest rate decision is set to be a key trigger for precious metals, with investors closely watching Chair Kevin Warsh's remarks for clues on the future interest-rate path.

Markets are also keeping an eye on developments involving Iran and shipping through the Strait of Hormuz, which could lift crude oil prices and stoke inflation concerns, boosting demand for safe-haven assets like gold and silver.

Bullion prices have been volatile in recent times, with domestic prices ending the previous week higher. On the Multi Commodity Exchange (MCX), August gold futures rose ₹2,200 (1.6%) to ₹1.43 lakh per 10 grams, while September silver futures gained ₹5,735 (2.7%) to ₹2.22 lakh per kg.

Analysts expect bullion to remain range-bound but highly sensitive to Fed signals, oil price volatility, and geopolitical risks. They also note that continued central bank buying, particularly by China, is expected to provide longer-term support.