Gold and silver prices are expected to remain range-bound this week as investors await a series of key global economic indicators, including the US non-farm payrolls report, for further clarity on the Federal Reserve's interest rate trajectory, according to analysts.
Market participants will closely monitor Purchasing Managers' Index (PMI) readings from the US, UK, Eurozone and Japan, while the spotlight will remain on the US employment data for July, including non-farm payrolls and the unemployment rate, which could influence expectations around future monetary policy.
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Analysts also said developments related to the US-Iran conflict and the stability of crude oil supplies through key global shipping routes will continue to shape investor sentiment in the precious metals market.
"MCX gold to trade in the Rs 1.40-1.44 lakh per 10 grams range in the near-term, with the directional move hinging on US macroeconomic data and evolving expectations around the Fed's policy path," said Jateen Trivedi, research analyst-commodity and currency, at LKP Securities.
In the domestic market, gold futures for August delivery declined Rs 1,595, or 1.1%, during the previous week to settle at Rs 1.41 lakh per 10 grams on the Multi Commodity Exchange. Silver futures for September delivery fell Rs 4,940, or 2.2%, to close at Rs 2.17 lakh per kilogram.
"Gold remained volatile and ended the week on a weaker note, with MCX Gold declining a little over 1 per cent as prices continued to consolidate within a broad trading range," Trivedi said.
Despite a weaker US dollar and a sharp correction in crude oil prices, gold failed to attract strong buying interest, reflecting a cautious approach among investors, analysts said.
In international markets, Comex gold futures for October delivery settled at $4,076.6 per ounce. Comex silver futures for September delivery dropped nearly 2% during the week to close at $57.78 per ounce in New York.
Trivedi said uncertainty surrounding the Federal Reserve's interest rate outlook remained the key factor weighing on bullion prices, as policymakers have yet to provide a clear timeline for future policy moves.
He also noted that added that investors will also watch speeches by Federal Reserve officials Lisa Cook and Thomas Barkin, along with China's trade data, including exports, imports, the Consumer Price Index and Producer Price Index for further cues on the global economy and the direction of bullion prices.
(With PTI Inputs)
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