COMEX gold prices rose to $4,740.90 per ounce, a 2.8% increase, as stalled peace talks between the United States and Iran renewed geopolitical tensions in the Middle East. The breakdown in negotiations, which also pushed crude oil prices up by nearly 2% to over $100 per barrel, has investors seeking safe-haven assets.
"Focus in the coming week will remain on the progress in peace talks between the US and Iran, and their potential impact on oil, gold, and broader financial markets," Pranav Mer, Vice President at JM Financial Services Ltd, said.
The recent price action follows a week of selling pressure where gold futures on the Multi Commodity Exchange dropped by 1.23% to Rs 1.54 lakh per 10 grams. Silver also saw a significant decline of 4.9% to Rs 2.44 lakh per kilogram. The international market reflected this trend, with COMEX silver falling 6.6% to $76.41 per ounce.
Investors are now closely watching the upcoming Federal Open Market Committee (FOMC) meeting on April 29 for any indication of the US central bank's monetary policy direction. Stronger-than-expected US retail sales, weekly jobless claims, and consumer sentiment data have supported the US dollar, which typically moves inversely to gold. However, the recent surge in oil-driven inflation fears may complicate the Fed's decision-making process.
Any escalating tensions in West Asia, particularly developments around the Strait of Hormuz, or dovish signals from major central banks, could revive buying interest in precious metals. Silver may remain more volatile due to its dual role as both a precious and an industrial metal.
This article is for informational purposes only and does not constitute investment advice.
