Gold Market Sees Volatility Ahead Amid Dollar, Oil Price Swings

The gold market is expected to remain volatile and range-bound in the coming week due to several factors, according to analysts. Traders will be tracking movements in the US dollar and bond yields, as well as developments in the West Asia conflict and crude oil prices.

Investors will also be focusing on a fresh batch of economic data, including mid-month manufacturing and services Purchasing Managers' Index (PMI) readings from major economies. Additionally, data on US housing, durable goods orders, and consumer sentiment readings due to be released towards the end of the week will provide cues on the outlook for monetary policy and bullion demand.

Jateen Trivedi, VP Research Analyst at LKP Securities, noted that MCX gold witnessed a weak opening last week near Rs 1.5 lakh per 10 gram but staged a strong recovery towards Rs 1.54 lakh per 10 gram as buying interest emerged at lower levels.

Comex gold futures for December delivery ended marginally higher at USD 4,424.9 per ounce, while silver gained 3% to USD 67.15 in New York. Investor demand has remained upbeat over the past 7-8 trading weeks, with continued inflows into gold exchange-traded funds across markets.