US-Iran Truce Leaves Precious Metals Volatile
New Delhi [India], July 27 (ANI): The fragile US-Iran truce has left precious metals volatile and range-bound, according to market experts. Brent crude prices dropped sharply after the ceasefire announcement but later recovered to trade around USD 91.93 per barrel.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said markets viewed the truce as a first genuine step towards de-escalation in two weeks. However, he noted that this is still a pause and not a deal, leaving the physical oil market unchanged.
Banerjee added that Brent crude has key support at USD 89-90 per barrel, with an immediate trading range of USD 92-95. A move above USD 101 would signal a return to the uptrend for Brent crude. For WTI crude, support lies at USD 84-86 and resistance at USD 92.
Gold is expected to remain in the USD 3,950-4,200 range, with Banerjee saying that gold is still under bearish pressure but has weakened downside momentum. Silver is also likely to remain range-bound between USD 55.50 and USD 63.20, but may be more volatile than gold due to its exposure to risk sentiment and industrial demand.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said softer oil prices reduced near-term inflation concerns and made bullion more attractive for overseas buyers despite fresh US tariffs on imports from several trading partners. He added that investors will closely watch upcoming US inflation and labour market data, with the US Federal Reserve's policy decision expected to be the key driver for gold prices in the near term.
Manoranjan Sharma, Chief Economist at Infomerics Valuation and Rating Limited, said Brent crude could ease further if global supply continues to outpace demand, potentially falling to the USD 70-80 per barrel range by late 2026 or 2027. He also noted that lower crude prices would reduce import payments, lower dollar demand, and narrow the current account deficit.