Kamal Ghorui
Gold, silver outlook: Precious metals are expected to remain volatile when markets open on Monday as the breakdown of US-Iran negotiations keeps sentiment fragile, with investors also tracking domestic inflation data and key global cues, analysts said.Apart from developments in West Asia, traders will monitor the US Producer Price Index (PPI), crude oil prices and speeches from Federal Reserve officials for direction in bullion prices, PTI reported.The domestic commodities market will remain closed for the morning session on Tuesday on account of Dr Baba Saheb Ambedkar Jayanti, and will reopen for the evening session.Iran’s parliamentary speaker Mohammad Bagher Ghalibaf said the US delegation “failed to gain the trust of the Iranian delegation in this round of negotiations”.Ghalibaf, who led the Iranian delegation, said his country negotiated in good faith and put forward “forward-looking initiatives”.US Vice-President JD Vance, however, said the talks ended without a deal after Iran refused to accept American terms on refraining from developing a nuclear weapon.“Focus will be on the key Chinese data on trade, investments and growth, etc. along with inflation numbers from Euro zone economies. In the domestic market, traders will monitor the Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation earlier in the week,” Pranav Mer, Vice President, EBG, Commodity & Currency Research, JM Financial Services Ltd, said.He added that volatility in bullion remains elevated as markets track developments in the US-Iran situation, noting that progress in talks would be positive for risk assets such as equities and commodities and may also support precious metals, while any adverse developments could trigger renewed volatility.On the Multi Commodity Exchange, precious metals ended the week in the green. Silver futures surged Rs 10,779, or nearly 5 per cent, while gold rose Rs 2,972, or about 2 per cent.“Gold prices closed in positive for the third straight week, supported by a weaker dollar, safe-haven buying amid ongoing geopolitical uncertainty in West Asia, and reports of a rebound in physical demand in countries such as India and China,” Mer said.He also noted that weaker-than-expected US economic data and signs of elevated inflation due to high oil prices have increased expectations that the Federal Reserve may keep interest rates steady.In global markets, Comex gold futures rose $107.7, or 2.3 per cent last week, while silver gained $3.56, or nearly 5 per cent.Silver also posted gains of over 4.5 per cent during the week, supported by strength in gold, renewed buying in industrial metals, a structural deficit in the physical market and a weaker US dollar.Analysts said market participants will also closely track developments around expected negotiations between Israel and Lebanon next week in Washington for further cues on bullion price trends.
