America-Developments related to the Iran deal, fluctuations in crude oil prices and key global economic data will decide the direction of gold and silver prices. Experts said the market will especially keep an eye on the talks taking place in Switzerland, where US Vice President JD Vance is expected to lead talks with Iranian officials. These talks will proceed on the outline made last week, which aims to end the tension.
At present the trend of gold and silver remains in a limited range
According to experts, the impact of this conversation can affect the risk appetite of investors and the energy markets, which will have a direct impact on the prices of gold and silver. Domestic commodity markets will remain closed in the morning session on Friday due to Muharram. “Gold and silver remain range-bound as the market keeps an eye on the US-Iran talks and the supply of crude oil, especially through the Strait of Hormuz,” said Pranav Mer, Vice President, Commodity and Currency Research at JM Financial Services Ltd.
Heavy fall in gold and silver prices last week
Last week, there was a huge fall in gold and silver prices due to strong rupee and falling demand. On MCX (Multi Commodity Exchange), gold futures fell by Rs 3,325 or 2.2 per cent to close at Rs 1.47 lakh per 10 gram, while silver fell by Rs 13,001 or 5.3 per cent to Rs 2.33 lakh per kg.
Strong rupee reduces cost of imported gold
“Gold remained under pressure throughout the week and ended around 2.2 per cent lower as fall in energy prices, strong rupee and US Federal Reserve’s dovish policy stance put pressure on prices,” said Jatin Trivedi, Vice President, LKP Securities. He said the stronger rupee reduces the cost of imported gold, putting additional pressure on prices.
Investors are more focused on West Asia than Russia-Ukraine war
In global markets, gold futures closed marginally higher at $ 4,245.9 an ounce, while silver fell 2.03 percent at $ 66.32 an ounce. Pranab Mer said that due to the strong dollar in the international market, there was pressure on gold and silver, the dollar index closed around 100.60. Although concerns over the Russia-Ukraine war provided some support to gold, investors remained particularly focused on developments in West Asia.
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