How far will the prices of gold and silver go next week, the market will keep an eye on these factors

Last week there was a sharp fall in the prices of gold and silver. Both precious metals remained weak due to selling pressure in domestic and international markets. Now the market will keep an eye on many important economic data and global developments coming next week, which can decide the direction of gold and silver prices.

According to analysts, the situation in West Asia and fluctuations in crude oil prices may have an impact on gold. Usually, when global tensions increase, investors turn to gold as a safe investment, but in recent times, the rise in oil prices has drawn investors’ attention elsewhere.

Data from America, China and India will be important

Next week, data related to trade and inflation of China and America will be released. Apart from this, the market will also keep an eye on America’s consumer sentiment data and India’s retail inflation rate (CPI). These data will give indications regarding interest rates and economic activities, which may impact the bullion market. Decisions related to monetary policy of the European Central Bank (ECB) will also be important for investors. If there is any big signal regarding interest rates, its impact can be seen on the dollar, bond yield and gold and silver prices.

How much did prices fall last week?

On Multi Commodity Exchange (MCX), gold for August delivery fell by Rs 5,317 or 3.3 percent last week and closed at Rs 1.55 lakh per 10 grams. Whereas silver for July delivery fell by Rs 18,461 i.e. about 7 percent to Rs 2.48 lakh per kg. Weakness was also seen in the international market. On Comex, gold slipped by about 5 percent and silver by about 9 percent.

What could be the trend next week?

Experts say that at present, instead of improvement in gold and silver, a phase of correction is visible. Precious metals may remain under pressure due to strong dollar, fear of higher interest rates and strong rupee. If gold remains below the level of $ 4,400-4,500 per ounce in the international market, then the rise in prices may remain limited. In such a situation, investors should keep a close eye on economic data and global developments next week.

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