Gold Prices Drop Amid Fed Hawkish Stance, Analysts Predict Volatility

The MCX gold futures contract for October 5 closed Friday's session at Rs 1,56,400 per 10 grams after a 1.63% decline from the previous day.

This comes on the heels of a 2-3% drop in gold prices last week due to the Federal Reserve's hawkish stance on inflation, signalled by Fed Chair Kevin Warsh.

Analysts expect volatility and caution against a strong gap-up opening on Monday, with commodity expert Nirpendra Yadav stating that 'a strong gap-up opening at this stage in gold is not expected.'

The Comex gold price fell 3.56% to $4,512 per ounce last week after briefly surging past $4,678.

Looking ahead to the new month, analysts will be keeping a close eye on US Labour-market data, including Non-Farm Payrolls and unemployment data.