Gold, silver rate outlook: Prices may stay range-bound next week; US-Iran tensions, jobs data in focus

Gold and silver prices are likely to remain range-bound next week as investors track developments in the US-Iran conflict, key global macroeconomic data and domestic political cues, analysts said, PTI reported.Market participants will watch PMI readings from major economies early in the week, followed by US labour market indicators and non-farm payroll data later in the week for signals on monetary policy and bullion demand.“In the week ahead, precious metal prices momentum is expected to remain mixed with focus on developments on the US-Iran tussle and follow-up on peace talks,” Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd, said.On the Multi Commodity Exchange (MCX), gold futures fell Rs 1,347, or nearly 1 per cent, to settle at Rs 1.51 lakh per 10 grams last week.Silver outperformed gold and rose Rs 879 to close at Rs 2.50 lakh per kilogram during the same period.“Gold traded largely range-bound last week, ending with a negative bias of closing at Rs 1.51 lakh per 10 grams on the MCX,” Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.Despite the weaker finish, Trivedi said the metal showed resilience after recovering from lower levels, largely helped by profit booking in crude oil during the latter half of the week.That eased inflation concerns and supported bullion prices, he added.In international markets, Comex gold futures dropped $96.4, or 2.03 per cent, to end at $4,644.5 per ounce over the week.Silver declined nearly 1 per cent to close at $75.84 per ounce in New York.Mer said bullion prices came under pressure due to a shift in investor preference toward risk assets such as equities, along with caution from major central banks over inflationary risks linked to elevated crude oil prices.He added that exchange traded fund investors remained net sellers last week, while the latest weekly holdings data is due on Monday.On the physical demand side, Mer said buying remained mixed as volatile global prices and a weaker rupee kept many buyers away, with similar trends seen in other centres.Trivedi said rupee movement would remain a major factor for domestic bullion prices.He said any appreciation in the Indian currency could weigh on local gold prices even if global prices remain firm.Additionally, upcoming state election results may create short-term volatility in the rupee and broader market sentiment, he added.