Gold and silver prices are expected to remain influenced by global economic indicators, geopolitical developments between the United States and Iran, and movements in crude oil prices during the coming week, according to market analysts. They said volatility and pressure could continue in the bullion market.
Analysts said manufacturing and services Purchasing Managers' Index (PMI) data from the United States and other major economies, eurozone inflation figures, U.S. Non-Farm Payroll data, and unemployment figures scheduled for release in the coming week could have a significant impact on market direction.
Investors are also expected to closely monitor rising geopolitical tensions between the United States and Iran. Analysts said any escalation in tensions or new announcements could affect demand for gold, which is regarded as a safe-haven asset.
Market experts said fluctuations in crude oil prices could influence gold and silver prices. The strength or weakness of the U.S. dollar will also remain an important factor for precious metals.
According to analysts, both gold and silver are currently undergoing a correction phase. However, buying interest may emerge at lower levels from time to time, which could result in a limited recovery in prices.
During the previous week, COMEX gold futures declined by about 3.5% in the international market, while silver fell by more than 10%. In the domestic market, futures prices of both gold and silver on the Multi Commodity Exchange (MCX) also recorded notable weakness.
According to market experts, strength in the U.S. dollar and a decline in crude oil prices eased inflation-related concerns, reducing demand for gold as a safe-haven investment.
However, some analysts believe that factors including gold purchases by China's central bank, geopolitical tensions, and global uncertainty could provide some support to prices in the period ahead. They said volatility is likely to persist in the bullion market during the coming week.
