In addition to events in West Asia, traders will keep an eye on the US Producer Price Index (PPI), crude oil rates, and remarks from several Federal Reserve officials for further guidance on bullion prices, they added.
The domestic commodities market will observe a closure on Tuesday morning in honor of Dr. Baba Saheb Ambedkar Jayanti, but trading will resume in the evening session.
Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, commented that the US delegation “failed to secure the trust of the Iranian delegation in this round of discussions.”
Leading the Iranian team, Ghalibaf remarked that his country approached negotiations in good faith and提出了”forward-looking initiatives”.
Meanwhile, US Vice-President JD Vance stated that the negotiations concluded without an agreement after Iran declined to accept American demands to halt nuclear weapon development.
”Attention will be on significant Chinese data regarding trade, investments, and growth, along with inflation statistics from Eurozone countries. In the domestic market, traders will monitor the Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation earlier in the week,” Pranav Mer, Vice President, EBG, Commodity & Currency Research, JM Financial Services Ltd, explained.
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He further indicated that bullion volatility remains elevated as global markets concentrate on peace negotiations between the US and Iran, with any progress positively impacting risk assets like equities and commodities, potentially boosting precious metals as well. Conversely, any setbacks could reignite volatility in the financial markets.
On the Multi Commodity Exchange, precious metals concluded the week in positive territory. Silver futures surged ₹10,779, nearly 5%, while gold rose ₹2,972, or 2%.
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”Gold prices have closed positively for the third consecutive week, bolstered by a weaker dollar, safe-haven purchases amid ongoing geopolitical tensions in West Asia, and reports of a resurgence in physical demand from nations like India and China,” he added.
Mer pointed out that weaker-than-anticipated US economic data and indications of persistently high inflation due to elevated oil prices have heightened expectations that the Federal Reserve may maintain interest rates at their current levels.
In the international markets, Comex gold futures increased by USD 107.7, or 2.3 percent, over the past week, while silver rose by USD 3.56, nearly 5 percent.
Silver prices also wrapped up the week with over 4.5% gains, fueled by positive momentum in gold, renewed demand in industrial metals, a structural deficit in the physical market, and a weaker US dollar.
Analysts indicate that market participants will also closely observe expected negotiations between Israel and Lebanon next week in Washington for further insights on the direction of bullion prices.
