Gold Prices Plummet Amidst Anticipation of Key Economic Data Releases

Gold prices on the Multi Commodity Exchange (MCX) plummeted by 3.8% last week, falling to Rs 1.56 lakh per 10 grams after a sharp correction. The decline comes as investors await key economic data releases from major economies, including India's manufacturing and services PMI numbers.

According to Jateen Trivedi, VP Research Analyst at LKP Securities, the coming week is likely to remain highly volatile due to market participants attempting to price in the probability of a September Federal Reserve policy change. This uncertainty will be influenced by US non-farm payroll data and inflation figures from Eurozone and Germany.

Pranav Mer, Senior Vice President at EBG - Commodity & Currency Research, JM Financial Services Ltd, noted that selling pressure intensified on Friday following Federal Reserve Chair Kevin Warsh's speech on inflation and monetary policy. The commentary triggered profit booking across bullion markets.