Gold's next test: Fed verdict, crude oil and geopolitical tensions in focus
Gold and silver prices are expected to remain volatile as markets react to upcoming US Federal Reserve interest rate decisions and geopolitical tensions in the Middle East. Analysts suggest that crude oil prices and inflation data will be the primary drivers for precious metal trends.
Why it matters
Investors are closely monitoring these macroeconomic indicators to hedge against uncertainty in the global financial markets.
After ending the previous week on a stronger note, gold and silver are now headed into a week packed with major domestic and geopolitical events. The US Federal Reserve's interest rate decision, movements in crude oil prices and the evolving US-Iran conflict will be the key drivers for bullion in the days ahead, according to analysts.Market's attention will not be limited to the Fed as investors will also be tracking US Consumer Confidence data, Core Personal Consumption Expenditures (PCE) inflation figures, weekly jobless claims, and monetary policy announcements from the Bank of England and the Bank of Japan."Market sentiment will continue to be driven by developments in the US-Iran geopolitical situation, the direction of crude oil prices, and their impact on inflation expectations ahead of the US Federal Reserve's policy decision on July 29," said Jateen Trivedi, VP research analyst - commodity and currency, LKP Securities.Recovery follows a volatile weekGold…
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