New Delhi, March 8: Gold prices are expected to remain volatile next week as investors track geopolitical developments in the Middle East and key macroeconomic data releases that could shape the sentiment in the domestic market, analysts said.
“Focus will again be on the developments in the Middle-East and further escalation would be positive for gold prices, but a sign of de-escalation may trigger sharp selling,” Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, said.
Mer added that silver is also undergoing a consolidation phase but remains highly volatile.
“Silver too is passing through a consolidation phase but trading with high volatility as gains are capped by consolidative moves in gold and industrial metals like Copper and Zinc,” he said.
During the past week, bullion futures witnessed sharp movements in the domestic market. On the Multi Commodity Exchange, silver plunged Rs 14,359, or 5.08 per cent, while gold slipped Rs 470, or 0.3 per cent.
“Gold prices consolidated in a broad range last week, in a range of Rs 1.59 lakh-1.70 lakh per 10 grams,” Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies, Angel One, said.
He added that geopolitical tensions, Asian demand, strong central bank purchases, elevated US Treasury bond yields and a firm dollar remain the key factors influencing price dynamics in the bullion market.
Globally, silver futures on the Comex slumped USD 8.98, or nearly 10 per cent, while gold prices fell USD 89.2, or 1.7 per cent, during the past week.
Gold has closed in the negative territory on a weekly basis amid rising demand for alternative safe-haven assets such as the US dollar, Franc, and Bonds, though the downside remains capped by ongoing geopolitical escalation in the Middle East, Mer said. (PTI)
