Analysts said precious metals gold and silver could remain under pressure in a short holiday trading week as markets react to developments in the US-Iran peace talks, fluctuations in crude oil prices and policy decisions of major global central banks. According to analysts, the sentiment of the precious metals in the coming days is expected to be largely influenced by geopolitical and macroeconomic factors. “The focus in the coming week will be on the progress of peace talks between the US and Iran and their potential impact on oil, gold and broader financial markets,” Pranab Mer, vice president, EBG – Commodity and Currency Research, JM Financial Services Ltd, told PTI. Investors will also keep an eye on monetary policy decisions from major central banks, including the US Federal Reserve, the Bank of Japan, the Bank of England and the European Central Bank. The Federal Open Market Committee (FOMC) meeting on April 29, which will be the last under Jerome Powell’s chairmanship, is expected to be closely watched for policy signals. Key US macroeconomic data releases including housing numbers, PCE inflation, consumer confidence and factory activity readings from major economies later in the week are also likely to weigh on sentiment. On the Multi Commodity Exchange, gold futures fell by Rs 1,910 or 1.23% this week to close at Rs 1.54 lakh per 10 gram, while silver fell by Rs 12,506 or 4.9% at Rs 2.44 lakh per kg. Analysts said gold’s decline in the domestic market was partly offset by a weaker rupee, which fell about 1.4% during the week. In global markets, Comex gold fell $138.7, or 2.8%, to $4,740.9 an ounce, while silver fell $5.4, or 6.6%, to $76.41 an ounce. “Gold prices lost some of their recent gains last week after failing to cross $5,000 an ounce in the international market and were weighed down by a number of factors including profit-booking after gains of 10-12% in the last four weeks,” Mer said. Crude oil prices rose above $100 a barrel as supply concerns grew following the US-Iran blockade of the Strait of Hormuz. Mer said precious metals continued to be under pressure from stronger US dollar demand and higher Treasury yields, supported by stronger-than-expected US retail sales, jobless claims and consumer sentiment data. He further said uncertainty over the timing of future rate changes amid mixed central bank activity and commodity-driven inflation could keep bullion volatile. Going forward, analysts expect gold to find support at lower levels, but weakness will remain if the dollar remains strong and geopolitical tensions ease. Silver can see high volatility due to its dual nature as both an industrial and precious metal.Domestic commodity markets will remain closed on Friday on the occasion of Maharashtra Day. He said dovish signals from the Middle East, particularly around the Strait of Hormuz, or from major central banks could revive demand for bullion.(Disclaimer: The recommendations and views given by experts on the stock market, other asset classes or personal finance management are their own. These opinions do not represent the views of The Times of India)
