Precious Metals Market Faces Another Turbulent Week

The precious metals market is in for another turbulent week, as various factors contribute to price volatility. On one hand, the Reserve Bank of India's monetary policy decision on Wednesday is expected to lead to a 25 basis points rate hike, which may affect gold prices.

Meanwhile, softer US employment data had initially supported gold by reducing expectations of aggressive monetary tightening by the Federal Reserve. However, this support proved short-lived as investors turned to profit-booking towards the end of the week.

The unresolved US-Iran situation will add another layer of uncertainty for precious metals, analysts say. In global markets, Comex gold futures for December delivery fell $158.9, or 3.7 per cent, to close at $4,162.3 per ounce, while silver dropped $4.38, or 6.7 per cent, to $60.41 per ounce.