Fed Decision, Oil Prices, Geopolitics to Drive Gold Market Fluctuations
Gold and silver prices have recovered after a volatile week driven by oil market developments. The precious metals are now poised for further fluctuations as key economic indicators and geopolitical tensions take center stage.
The US Federal Reserve's interest rate decision on July 29 is expected to influence bullion prices, along with movements in crude oil prices and the evolving US-Iran conflict. According to Jateen Trivedi, VP research analyst at LKP Securities, market sentiment will continue to be driven by these factors ahead of the Fed's policy decision.
As gold futures for August delivery settled Rs 2,200 higher at Rs 1.43 lakh per 10 grams in the domestic market, global markets mirrored this trend. Comex gold futures for August delivery rose $52, or 1.3%, to $4,070.8 per ounce.
Bullion is likely to remain range-bound as traders continue to monitor developments surrounding Iran, said Praveen Singh, head of commodities at Mirae Asset ShareKhan.