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Gold/Silver Volatile: US-Iran Tensions, Oil Prices Drive Market
13 Jul
Summary
- Gold and silver face volatility, driven by US-Iran tensions and oil price shifts.
- Geopolitical escalation could boost oil, revive inflation, and favor the US dollar.
- MCX gold futures fell 2.65%, silver 6.2% last week amid profit-booking.
Gold and silver are anticipated to experience significant volatility with a corrective bias in the upcoming week. This outlook is shaped by the escalating US-Iran conflict, movements in crude oil prices, and crucial inflation data expected from major economies. These factors are critically influencing global interest rate expectations and overall investor sentiment.
Fresh hostilities in West Asia have heightened market uncertainty. An intensification of the conflict could lead to higher crude oil prices and renewed inflation concerns. This scenario might also strengthen safe-haven assets like the US dollar and Treasury yields, thereby capping potential gains for gold and silver.
In the domestic market, MCX gold futures for August delivery saw a decline of 2.65%, while September silver futures dropped by 6.2% over the past week. This trend suggests that rallies are attracting profit-booking, indicating a cautious market. Investors are closely monitoring key US economic indicators and Chinese economic data for further insights into monetary policy and the industrial metals outlook.
