Gold, Silver Likely to Trade Range-Bound Next Week as Investors Track West Asia Tensions and Fed Signals

Gold and silver prices are expected to fluctuate in a narrow band in the coming week. Investors will be monitoring the geopolitical situation in West Asia and key global economic indicators. These factors will influence gold and silver prices, according to experts. According to analysts, this week's address by US Fed Chairman Jerome Powell and statements by other Fed officials will be of particular importance. These will provide indications on interest rates and monetary policy, which could impact gold and silver demand.

Gold prices are declining due to selling by gold ETF investors, physical demand, and higher US bond yields and dollar prices. In the international market, gold prices have fallen by almost 2 percent and closed at 4,492.5 dollars an ounce. Silver prices have increased slightly and closed at 69.79 dollars an ounce. The weaker US market has helped silver prices. However, higher bond yields and oil prices have not allowed gold demand to increase.

Looking at last week's data, gold closed marginally lower at around Rs 1.44 lakh per 10 grams in the domestic futures market, while silver rose by Rs 1,182 to Rs 2.27 lakh per kilogram. The rupee's weakness has provided some support to gold and silver prices. Last week, the rupee fell more than 1 percent to around 94.80 per dollar.

Pranav Meer of JM Financial said, "Investors will remain focused on events in West Asia next week. Any signs of escalation or easing of tensions could move the market up or down." Additionally, the market will also be closely watching manufacturing data from major economies, Eurozone inflation data, and US consumption and employment data. Domestically, the market may remain sluggish, as markets will be closed on March 31 and April 3 for Mahavir Jayanti and Good Friday.