Politics · India Bureau
Gold, silver brace for volatile week amid dollar, geopolitical tensions
Precious metals markets face renewed turbulence as currency movements and unresolved US-Iran tensions create headwinds for investor sentiment. Domestic monetary policy decisions and global economic data releases will offer further direction for bullion prices this week.
LSN India ·
Gold and silver are poised for another week of choppy trading as a strengthening US dollar and persistent geopolitical risks weigh on market sentiment, according to analysts tracking the precious metals sector.
On the domestic front, investors are closely monitoring the Reserve Bank of India's monetary policy announcement scheduled for Wednesday, with market expectations pointing to a 25 basis point rate increase. Additional economic indicators due through the week—including services PMI readings from major economies, US trade data, and mid-month consumer sentiment figures—are likely to provide fresh signals for bullion valuations.
Recent trading on the Multi Commodity Exchange has already reflected this pressure. December-dated gold futures fell Rs 2,887, or approximately 2 per cent, during the shortened trading week, closing at Rs 1.5 lakh per 10 grams. Silver declined more sharply, dropping Rs 8,819, or nearly 4 per cent, to settle at Rs 2.25 lakh per kilogram. Analysts attribute the weakness to a stronger US dollar and elevated bond yields, which have prompted profit-booking among investors.
The unresolved US-Iran situation continues to inject an additional layer of uncertainty into precious metals markets, analysts noted. This geopolitical backdrop, combined with macroeconomic data flow and currency movements, is expected to sustain volatility in coming sessions.