Gold and Silver Stuck in Neutral as Investors Await Fed Rate Clarity

Investors are awaiting fresh clues on the Federal Reserve's interest rate outlook as gold and silver trade in a narrow range this week. Economic data, including the US non-farm payrolls report, will be closely monitored for direction on monetary policy. The purchasing managers' index (PMI) data from major economies such as the US, UK, Eurozone, and Japan will also influence market sentiment.

Developments surrounding the US-Iran conflict and crude oil supplies through key shipping routes remain important drivers of market sentiment. MCX gold is expected to trade between Rs 1.40-1.44 lakh per 10 grams in the near-term, with direction dependent on US macroeconomic data and evolving expectations around the Fed's policy path.

On the domestic front, gold futures for August delivery fell by Rs 1,595 (1.1%) to close at Rs 1.41 lakh per 10 grams last week, while silver futures for the September contract declined Rs 4,940 (2.2%) to settle at Rs 2.17 lakh per kilogram on the Multi Commodity Exchange.

Despite a weak US dollar and sharp correction in crude oil prices, gold failed to attract significant buying interest due to cautious investor sentiment.