US Fed verdict, oil volatility to set bullion’s near-term price direction

Gold and silver are expected to remain volatile as investors assess the US Federal Reserve's interest rate decision, crude oil price movements and escalating tensions in West Asia, factors analysts say will shape bullion's near-term direction, PTI reported on Sunday.

  The Federal Reserve's policy announcement will be the key trigger for precious metals, with markets watching Chair Kevin Warsh's remarks for clues on the future interest-rate path. 

  Investors will also track US Consumer Confidence, Core PCE inflation, weekly jobless claims, and policy decisions by the Bank of England and the Bank of Japan. Analysts said developments involving Iran and shipping through the Strait of Hormuz remain critical, as any disruption could lift crude oil prices, stoke inflation concerns and boost demand for safe-haven assets. Domestic bullion prices ended the previous week higher. 

  On the MCX, August gold futures rose ₹2,200 (1.6%) to ₹1.43 lakh per 10 grams, while September silver futures gained ₹5,735 (2.7%) to ₹2.22 lakh per kg. 

  Analysts expect bullion to remain range-bound but highly sensitive to Fed signals, oil price volatility and geopolitical risks, with investors likely to remain cautious ahead of key policy announcements, while continued central bank buying, particularly by China, is expected to provide longer-term support.