Gold Prices to Stay Range-Bound This Week: Here’s What’s Driving the Market
Gold investors, brace for another watchful week. Prices are expected to stay range-bound as markets keep an eye on major central bank meetings, the US-Iran negotiations, and crude oil movements, analysts told PTI.
What to Watch
This week, all eyes are on policy decisions from the Bank of Japan, the US Federal Reserve, and the Bank of England, along with fresh inflation data from the UK, Eurozone, Germany, and Japan — all of which will shape the global interest-rate narrative.
But the biggest wildcard? The US-Iran deal.
“A close eye will remain on the finalisation of the US-Iran deal. If signed, we may see an extended rally in risk assets that could lift gold and silver too. Any escalation, though, would be negative for markets,” said Pranav Mer, VP, EBG – Commodity & Currency Research, JM Financial Services Ltd.
The Domestic Picture
On MCX, gold futures for August delivery slipped Rs 5,066 (3.2%) over the week, settling near Rs 1.50 lakh per 10 grams. Silver futures for July delivery dipped Rs 2,351 (nearly 1%) to Rs 2.46 lakh per kilogram.
“Gold prices declined sharply, falling more than 3% and testing the Rs 1,48,000 per 10 gram level on the MCX,” noted Jateen Trivedi, VP Research Analyst, LKP Securities.
Trivedi added that bullion stayed volatile through the week as easing energy-market tensions and US-Iran uncertainty pressured prices — though sentiment picked up later after reports ruled out immediate military action against Iran, triggering safe-haven buying.
Global Cues
Internationally, Comex gold futures fell USD 126.5 (nearly 3%) to close at USD 4,238.8 per ounce, while silver dropped USD 1.13 (1.6%) to USD 67.97 per ounce.
Mer noted gold clawed back some losses toward week’s end, rebounding over 5% as the dollar weakened and bond yields fell on hopes of an imminent US-Iran peace agreement — though he cautioned uncertainty will linger until it’s formally signed.
Continued ETF outflows and expectations of elevated interest rates through early 2027 also kept pressure on bullion.
Also on the Radar: The G7 Summit
Markets will also track the G7 Summit in France, where leaders — including PM Narendra Modi — are expected to discuss Iran and Ukraine, offering more clues on gold’s near-term direction.
