US Economic Data to Keep Gold, Silver Prices in Narrow Range

Gold and silver prices are expected to trade in a narrow range this week as market participants await key US economic data, including the non-farm payrolls report. The report will provide fresh clues on the Federal Reserve's interest rate outlook, which is currently uncertain.

Investors will monitor purchasing managers' index (PMI) data from major economies such as the US, UK, Eurozone, and Japan. The July employment data from the US, including non-farm payrolls and unemployment rate, will also be closely watched.

Globally, developments surrounding the US-Iran conflict and crude oil supplies through key shipping routes will remain important drivers of market sentiment, analysts said.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, predicted that MCX gold will trade in the Rs 1.40-1.44 lakh per 10 grams range in the near-term. The directional move will hinge 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 or 1.1% during the last week to close at Rs 1.41 lakh per 10 grams. Silver futures for the September contract declined Rs 4,940 or 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, indicating cautious investor sentiment, Trivedi said.