Gold Prices Under Pressure as Dollar Rises Amid Geopolitical Tensions
New Delhi - The outlook for gold and silver remains cautious as they face another potentially choppy week, influenced by US data releases, West Asia tensions, and their impact on crude prices. Market participants will focus on key US economic indicators, including consumer confidence, GDP, and PCE inflation readings, which may provide cues for bullion sentiment.
The ongoing US-Iran standoff continues to add to geopolitical uncertainty, with US President Donald Trump rejecting Tehran's proposal to reopen the Strait of Hormuz within a week. This development will likely remain in the spotlight as commodity markets navigate the upcoming US nonfarm payrolls and unemployment data releases.
According to Jateen Trivedi, VP Research Analyst at LKP Securities, 'The broader outlook remains cautious with volatility likely to stay elevated as the market will closely focus on the upcoming US nonfarm payrolls and unemployment data, which will be crucial in determining expectations around the Federal Reserve's October policy decision.'
On the Multi Commodity Exchange (MCX), gold futures for October delivery declined by 2.3% last week to settle at Rs 1.5 lakh per 10 grams, while silver futures fell by 3% to Rs 2.34 per kilogram.