Gold, silver await fresh triggers amid Fed rate cncertainty

New Delhi: Gold and silver are likely to trade in a narrow range this week as traders await a raft of economic data, including the US non-farm payrolls report, for fresh clues on the Federal Reserve’s interest rate outlook, analysts said. Investors will monitor purchasing managers’ index (PMI) data from the US, the UK, the Eurozone and Japan.

Focus will remain on July employment data from the US, comprising non-farm payrolls and the unemployment rate.Globally, developments surrounding the US-Iran conflict and the stability of crude oil supplies through key shipping routes will remain important drivers of market sentiment, they added.

“MCX gold to trade in the Rs 1.40-1.44 lakh per 10 grams range in the near-term, with the directional move hinging on US macroeconomic data and evolving expectations around the Fed’s policy path,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. On the domestic front, gold futures for August delivery fell by Rs 1,595, or 1.1 per cent, during the last week to close at Rs 1.41 lakh per 10 grams.Silver futures for the September contract declined Rs 4,940, or 2.2 per cent, to settle at Rs 2.17 lakh per kilogram on the Multi Commodity Exchange.

“Gold remained volatile and ended the week on a weaker note, with MCX Gold declining a little over 1 per cent as prices continued to consolidate within a broad trading range,” Trivedi said.Despite a weak US dollar and a sharp correction in crude oil prices, gold failed to attract significant buying interest, indicating cautious investor sentiment, he added.