Gold and Silver Brace for Volatile September After Sharp Correction
Gold and silver prices are bracing for volatility in September after experiencing a sharp correction that wiped out over Rs 6,000 from their value. The bullion markets are expected to remain highly volatile as investors track key economic indicators such as US jobs data, manufacturing and services PMI data from major economies, and inflation figures from the Eurozone and Germany.
The Federal Reserve's September policy decision is also on everyone's radar, with many market participants attempting to price in the probability of a change. According to Jateen Trivedi, VP Research Analyst at LKP Securities, 'the coming week is likely to remain highly volatile'.
Gold futures for October delivery on the MCX fell Rs 6,157, or 3.8 per cent, last week to Rs 1.56 lakh per 10 grams, while silver futures for September declined Rs 9,893, or 4 per cent, to Rs 2.36 lakh per kg.
Despite the correction, silver outperformed gold in August, gaining around 21 per cent against gold's 15.7 per cent.