Gold, Silver Prices to be Driven by Fed Decision, Oil Swings Amid West Asia Tensions
Gold and silver prices will be driven by several key factors this week, according to analysts. The US Federal Reserve's interest rate decision on July 29 is a major concern for investors, with potential implications for inflation expectations and bullion prices.
Additionally, the market will monitor developments in the escalating West Asia tensions, particularly between the US and Iran. This could lead to sharp swings in oil prices, which have recently reclaimed the $100-per-barrel mark. However, some analysts predict that gold and silver will trade within a range due to ongoing market uncertainty.
On the domestic front, gold futures for August delivery rose ₹2,200, or 1.6%, to close at ₹1.43 lakh per 10 grams last week. Silver futures for September delivery also gained ₹5,735, or 2.7%, to ₹2.22 lakh per kilogram on the Multi Commodity Exchange.
Experts say that market sentiment will continue to be driven by US-Iran developments, oil price movements, and their impact on inflation expectations ahead of the Federal Reserve's policy decision. Shipping activity through the Strait of Hormuz is also expected to remain in focus, as well as comments from Federal Reserve Chair Kevin Warsh after the policy announcement.