US Fed Decision, Oil Swings to Test Bullion Price Momentum

Gold and silver are gearing up for a critical week as several factors will determine whether they sustain their recovery or face renewed pressure. The US Federal Reserve's interest rate decision, oil price movements, and the ongoing US-Iran conflict are key drivers to watch.

The Fed's decision on interest rates is one of the most crucial events this week. Additionally, investors will keep a close eye on US Consumer Confidence data, Core Personal Consumption Expenditures (PCE) inflation figures, and weekly jobless claims.

Domestically, gold futures for August delivery rose by 1.6% to close at Rs 1.43 lakh per 10 grams during the last week, while silver futures for September delivery gained 2.7% to Rs 2.22 lakh per kilogram on the Multi Commodity Exchange.

Globally, Comex gold futures advanced by 1.3% to settle at $4,070.8 per ounce, and silver contracts rose by nearly 5% to $58.90 per ounce in New York. The sharp swings in bullion prices were partly due to Brent crude briefly reclaiming the $100-per-barrel mark after Houthi strikes on Saudi-owned vessels.