Traders will track inflation data from China, Germany and the United States later this week, along with eurozone and UK GDP numbers, they added.
“Momentum in gold prices looks strong, while silver movement looks positive in the coming week as traders refocus on the progress of peace talks between the US and Iran to end the war and markets are likely to react accordingly,” said Pranav Mer.
On the Multi Commodity Exchange (MCX), gold futures last week touched Rs. 1,178 or up nearly 1 percent to Rs. 1.52 lakh per 10 grams was settled. Silver Rs. 10,985, up 4.4 percent to Rs. 2.61 lakh per kg was closed.
Jatin Trivedi, VP Research Analyst – Commodity & Currency, LKP Securities, said, “Gold traded on a positive undertone last week, gaining about 1 percent on the MCX to close around Rs 1.52 lakh per 10 grams.”
Live events
He added that a correction in crude oil prices after easing geopolitical risk premiums also improved sentiment for bullion.
“Lower US Treasury bond yields and a softer dollar index also helped gold remain steady despite volatility in global markets,” Trivedi said.
In the international market, Comex gold futures rose nearly 2 percent last week to USD 4,730.7 an ounce and silver rose 5.8 percent to USD 80.86 an ounce.
“Gold prices remained steady and moved in a consolidation range for most of the week; however, overall momentum remained positive amid a weakening dollar and reports of progress on the framework of a possible peace deal to end the US-Iran war,” Pranav Mair said.
Silver prices also ended with a strong rally for the second consecutive week, supported by renewed buying in copper prices, a weaker US dollar and signs of tight supply in the global market, he added.
Bullion was also supported by continued central bank purchases and new inflows of funds into global exchange-traded funds, according to the World Gold Council.
Precious metal prices were range-bound on Friday, however, as gains were capped by signs of renewed conflict after US and Iranian forces clashed in the Persian Gulf, Mayer said.
Meanwhile, the United Arab Emirates came under renewed attack, but President Donald Trump calmed markets, saying “the ceasefire is still in place.”
Analysts, investors will be watching developments around US President Donald Trump’s expected visit to China and the Senate’s vote on new Federal Reserve Chairman Kevin Warsh.
Domestic market inflation, trade figures and rupee movement will also be crucial for bullion prices for the coming week.
(You can now subscribe to our ETMarkets WhatsApp channel)