US-Iran tensions and inflation fears weigh on global bullion, while Delhi sees strong surge in silver prices

Gandhi further said, "These developments have raised concerns about the sustainability of the ceasefire and increased uncertainty surrounding the US-Iran peace talks. The renewed tensions have revived concerns about higher energy prices and inflation, strengthening the dollar and putting pressure on precious metals." Meanwhile, investors are expected to closely monitor key global macroeconomic indicators this week.

Kayanat Chainwala, AVP of Commodity Research at Kotak Securities, said investors will focus their attention on global macroeconomic data, including US retail and household sales figures, weekly unemployment claims, and consumer sentiment.

PMI data from major economies will also be monitored for signs of growth. He further added that markets will also be watching the testimony of the new Federal Reserve Chairman, Kevin Warsh, to Congress on Tuesday. This could provide early clues about the policy stance and his tolerance for energy-driven inflation. "Nevertheless, the main driving factor will likely remain the escalating US-Iran standoff, and any significant escalation is likely to put additional pressure on gold prices," Chainwala said.