Gold Prices Expected to Remain Volatile Amid Economic Data Releases
Gold prices are expected to remain volatile and range-bound in the coming week as traders track key economic indicators and global events. Analysts say investors will focus on fresh data releases, including mid-month manufacturing and services Purchasing Managers' Index (PMI) readings from major economies.
The US housing market, durable goods orders, and consumer sentiment readings due towards the end of the week will also be closely watched for cues on monetary policy and bullion demand. On the Multi Commodity Exchange (MCX), gold futures for October delivery rose Rs 1,597, or 1.04 per cent, last week to close at Rs 1.54 lakh per 10 grams.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said MCX gold witnessed a weak opening 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.
The US dollar index and Treasuries pared some gains as oil prices reversed mid-week following the Federal Reserve's 25-basis-point rate hike. Investor demand has remained upbeat over the past 7-8 trading weeks, with continued inflows into gold exchange-traded funds across markets.