Gold and silver prices are likely to remain under pressure next week amid fluctuations in crude oil prices. Market analysts have expressed this opinion. Investors will also be watching tensions between the US and Iran and inflation figures. According to analysts, investors will also be watching inflation data from China, the US, Germany, Japan and India next week. Apart from this, investors will also keep an eye on comments from US Federal Reserve officials and US employment data.
China’s economic data will also be important in terms of industrial metals prices. The tension between the US and Iran will be the main factor determining the direction of the market from a geopolitical point of view. US President Donald Trump has confirmed a new military attack on Iran. However, he has also claimed that there has been significant progress in talks with Tehran. Due to this there is uncertainty in the market.
What will be monitored?
Pranav Mer, senior vice president (commodity and currency research) at JM Financial Services Limited, said that the upward trend in gold and silver prices is currently weak. Investors will be watching inflation data from China, the US, Germany, Japan and India, as well as comments from Federal Reserve officials. In the domestic market, gold futures for December delivery on the Multi Commodity Exchange (MCX) last week traded at Rs. 1.42 lakh per 10 grams, which was Rs. 3,682 or an increase of nearly three per cent to Rs.
At the same time, the future price of silver was Rs. 5,655 i.e. 3.15 percent increase to Rs. 1.84 lakh per kg. In the international market, gold for December delivery on the Comex rose $176, or 4.5 percent, to close at $4,074.9 an ounce during the week. Silver rose $2.6, or 5.4 percent, to $51.94 an ounce.
The increase was seen after the US election
Gold and silver prices were initially under pressure due to expected US non-farm payrolls data and improvement in consumer sentiment, Mayer said. This led to a rise in yields on the dollar and US Treasury bonds. However, after the mid-term US election results in the middle of the week, prices rose sharply and the precious metal rose more than four percent during the week in the international market. Gold and silver futures contracts saw renewed selling pressure on Friday, according to Mer. Both metals closed around $4,074 and $52 an ounce, respectively.
