Business
Global Tensions and Fed Outlook Keep Bullion Markets on Edge
Gold prices are expected to trade within a limited range in the coming week as investors closely monitor evolving negotiations between the United States and Iran, while silver may continue to maintain a positive trend due to geopolitical tensions and elevated energy prices, according to market analysts.
Analysts expect gold prices to remain largely range-bound in the coming week as traders await greater clarity on ongoing negotiations between the United States and Iran, developments that continue to influence global commodity and financial markets.
Silver, however, is projected to retain a positive bias amid persistent geopolitical uncertainty and elevated global energy prices, which have supported demand for precious metals as safe-haven assets.
Market participants are also expected to closely monitor key economic indicators from the United States, including housing sector data, gross domestic product (GDP) figures, consumer confidence readings and Personal Consumption Expenditure (PCE) inflation data. These indicators could provide further insights into the future policy direction of the Federal Reserve.
Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services Ltd, said gold price momentum next week appears sideways, while silver continues to show strength as investor focus remains on peace negotiations between the US and Iran.
Global precious metal markets have experienced heightened volatility in recent weeks due to geopolitical tensions in West Asia, fluctuations in crude oil prices, and uncertainty regarding future interest rate decisions by major central banks.
Analysts believe that any breakthrough in diplomatic talks or shifts in inflation and interest rate expectations could significantly impact bullion prices in the near term.
