Gold and silver are set for another bout of turbulence in the coming week, as movement in the US dollar and unresolved US-Iran tensions cloud the outlook, analysts said.
On the domestic front, investors will watch the Reserve Bank of India’s monetary policy decision on Wednesday, with a 25 basis points rate hike expected.
Services PMI data from major economies, US trade figures and mid-month consumer sentiment data due later in the week will also provide cues to bullion prices. The unresolved US-Iran situation will add another layer of uncertainty for precious metals, they added.
On the Multi Commodity Exchange (MCX), gold futures for December delivery declined Rs 2,887, or 2 per cent, during the holiday-shortened week to end at Rs 1.5 lakh per 10 grams, while silver dropped Rs 8,819, or nearly 4 per cent, to Rs 2.25 lakh per kilogram.
“MCX gold remained under pressure last week, declining around 2 per cent as a stronger US dollar and rising bond yields intensified profit-booking .
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