Gold, Silver Likely To Stay Range-Bound Amid US-Iran Peace Negotiations

Gold and silver prices are expected to remain range-bound for the second consecutive week as investors closely monitor developments in the ongoing US-Iran peace negotiations and key global economic indicators, according to market analysts. Traders are likely to focus on upcoming inflation data from China, Germany, and the United States, along with GDP figures from the Eurozone and the United Kingdom, which could influence sentiment across commodity markets.

On the Multi Commodity Exchange (MCX), gold futures rose by Rs 1,178, or nearly 1 per cent, during the past week to settle at Rs 1.52 lakh per 10 grams. Silver outperformed gold, climbing Rs 10,985 or 4.4 per cent to close at Rs 2.61 lakh per kilogram. Analysts noted that bullion prices continued to receive support from easing geopolitical tensions, softer bond yields, and a weaker US dollar.

Pranav Mer, Vice President of Commodity and Currency Research at JM Financial, said gold prices appeared to be moving in a consolidative phase, while silver showed stronger positive momentum. He noted that traders would continue to track progress in the peace discussions between the United States and Iran, as any breakthrough or escalation could significantly impact safe-haven demand.

Also Read: SBI Announces Rs 17.35 Dividend In Strong Q4 Performance Update

Jateen Trivedi, Vice President Research Analyst at LKP Securities, said gold traded with a positive undertone through the week despite volatility in global markets. According to him, the decline in crude oil prices following reduced geopolitical risk premiums improved investor sentiment toward bullion. Lower US Treasury yields and a softer dollar index also helped stabilise gold prices internationally.

In the global market, Comex gold futures gained nearly 2 per cent over the week to settle at USD 4,730.7 per ounce, while silver advanced 5.8 per cent to USD 80.86 per ounce. Analysts said silver prices continued to benefit from strong industrial demand, rising copper prices, supply concerns, and weakness in the US dollar. The World Gold Council also noted that continued central bank buying and fresh inflows into exchange-traded funds supported bullion prices globally.

Despite the gains, precious metals traded within a narrow range on Friday after renewed tensions emerged in the Persian Gulf following clashes involving US and Iranian forces. Markets, however, found some relief after Donald Trump stated that a ceasefire was still holding. Investors will now monitor further geopolitical developments, domestic inflation and trade data, movements in the rupee, and expectations surrounding the next Federal Reserve leadership decision for direction in bullion markets.

Also Read: S&P 500 And Nasdaq Fall From Record Highs As Markets Await Iran Response