Gold and Silver Prices Hang in Balance Ahead of Fed Rate Decision

The Federal Reserve's decision on interest rates will play a crucial role in determining the direction of gold and silver prices this week. The US-Iran tensions, oil volatility, and inflation expectations ahead of the Fed's policy decision on July 29 are expected to drive market sentiment.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said that market sentiment will continue to be driven by developments in the US-Iran geopolitical situation, the direction of crude oil prices, and their impact on inflation expectations ahead of the US Federal Reserve's policy decision.

On the domestic front, gold futures for August delivery rose by Rs 2,200 or 1.6 percent last week to close at Rs 1.43 lakh per 10 grams. Silver futures for September delivery increased by Rs 5,735 or 2.7 percent to Rs 2.22 lakh per kilogram on the Multi Commodity Exchange.

Globally, Comex gold futures for August delivery advanced USD 52 or 1.3 percent to settle at USD 4,070.8 per ounce, while silver for the September contract rose USD 3 or nearly 5 percent to USD 58.90 per ounce in New York.