US Fed action, oil swings to test bullion as traders eye West Asia risks

Gold and silver are heading into a crucial week, with the Federal Reserve's interest rate decision, oil price movement and the US-Iran conflict determining whether bullion extends its recovery or comes under renewed pressure, analysts said.
Apart from the Fed's decision, investors will monitor US Consumer Confidence, Core Personal Consumption Expenditures (PCE) inflation data, weekly jobless claims and monetary policy announcements by 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.
On the domestic front, gold futures for August delivery rose Rs 2,200, or 1.6 per cent, to close at Rs 1.43 lakh per 10 grams during the last week.
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