US-Iran talks, Fed signals to guide gold prices

Peace negotiations, oil prices and Fed commentary could determine bullion's direction in coming days

Gold prices are expected to remain sensitive to developments in US-Iran negotiations, movements in crude oil prices and key macroeconomic indicators this week, analysts said.

Market participants will also closely track comments from US Federal Reserve officials for clues on the future interest rate path, which could influence investor sentiment towards precious metals.   Pranav Mer at JM Financial Services, said, momentum in gold and silver remains largely sideways to corrective. 

The  progress in the ongoing US-Iran peace talks will be a major factor for commodity markets, particularly gold and crude oil.

The ceasefire and negotiation window between the two countries has reportedly been extended by another 60 days. A positive outcome could reduce geopolitical risks, weaken safe-haven demand and put further pressure on gold prices.

On the MCX, gold futures fell ₹3,104, or nearly 2%, during the week to settle at ₹1.55 lakh per 10 grams. 

Silver futures also declined ₹4,848, or 1.8%, to close at ₹2.66 lakh per kilogram.In overseas markets, Comex gold futures ended the week marginally higher at $4,593 per ounce, while silver slipped to $75.87 per ounce.

Analysts said precious metals have remained under pressure due to easing geopolitical concerns, declining crude oil prices and strong gains in global equity markets. 

Continued liquidation in ETFs has also weighed on bullion. However, persistent inflation concerns and expectations that major central banks could maintain a hawkish stance are expected to provide some support to gold prices, limiting the downside despite weaker safe-haven demand. —PTI