Geopolitical Developments – Gold and silver are trading weak. Continued uncertainty over US-Iran peace talks has pushed oil prices higher, raising inflation worries and supporting the case for a tighter Fed stance. Gulf tensions escalated again on Wednesday, as the U.S. military reported that Iranian missile attacks on Bahrain, Kuwait, and other regional targets were either intercepted or failed, while talks between Washington and Tehran made little headway.

Domestic Restrictions – India has tightened its rules on silver imports, adding grain and powder forms to the restricted list and requiring prior valid import authorization. As the world’s largest consumer of the metal, India is trying to curb inflows and reduce pressure on the rupee.

Macro-economic Signals – Cleveland Federal Reserve President Beth Hammack said on Tuesday that the central bank may need to raise interest rates soon if already-high inflation keeps climbing. Investors are now waiting for U.S. nonfarm payroll data, due later today, and the employment report on Friday, to judge the Fed’s likely policy direction.

Technical Triggers   

Gold stays range-bound between $4,450 and $4,600. Prices have rebounded from the lower edge of the range and are now expected to advance toward the upper edge.

Silver remains range-bound between $72 and $78.50. It too has recovered from the lower boundary and is now expected to climb toward the upper boundary.

Dr.Renisha Chainani, Head- Research, Augmont