Gold and silver prices are expected to remain volatile in the coming week as investors closely monitor the strength of the US dollar, escalating geopolitical tensions involving Iran, crude oil price movements, and a series of key global economic data releases. Analysts believe these factors will determine the near-term direction of bullion prices in both domestic and international markets.
Precious Metals Under Pressure
Bullion markets witnessed significant selling pressure during the previous week, with both gold and silver recording sharp losses.
On the Multi Commodity Exchange (MCX):
Gold August futures declined by ₹3,041, or 2.06%, to settle at ₹1.44 lakh per 10 grams.
Silver September futures dropped ₹15,269, or 6.4%, to close at ₹2.23 lakh per kilogram.
Internationally, weakness was even more pronounced:
COMEX gold futures fell 3.5% during the week to around $4,096.30 per ounce.
COMEX silver futures plunged 10.7% to approximately $59.67 per ounce.
Strong US Dollar Remains Key Headwind
Analysts say the strengthening US dollar continues to weigh heavily on precious metals.
Since gold and silver are priced in dollars, a stronger greenback makes them more expensive for buyers using other currencies, reducing global demand. At the same time, higher US Treasury yields and expectations that the US Federal Reserve could maintain a tighter monetary policy have reduced the appeal of non-interest-bearing assets such as gold.
Iran Crisis Adds Geopolitical Uncertainty
Geopolitical developments in West Asia remain another major factor influencing bullion prices.
Negotiations between the United States and Iran have reportedly stalled following renewed military tensions. Investors are watching developments closely because any escalation could increase safe-haven demand for gold, while signs of easing tensions may pressure prices further.
Crude Oil Prices Also in Focus
Crude oil prices have corrected sharply in recent sessions, easing inflation concerns across global markets.
Lower inflation expectations generally reduce demand for gold as an inflation hedge. However, sudden spikes in oil prices due to geopolitical disruptions could quickly revive demand for precious metals.
