Gold Prices Poised for Volatility in September Amid Economic Uncertainty

Gold prices are expected to remain volatile in September as investors await key economic indicators and geopolitical tensions, say analysts. The commodity markets have been hit hard this week, with gold futures for October delivery on the Multi Commodity Exchange (MCX) tumbling Rs 6,157, or 3.8 per cent, last week to Rs 1.56 lakh per 10 grams. Silver futures also took a hit, falling Rs 9,893, or 4 per cent, to Rs 2.36 lakh per kilogram.

Analysts say investors will focus on manufacturing and services PMI data from major economies, including India, in the coming month. Inflation figures from the Eurozone and Germany, as well as US non-farm payroll data due towards the end of the week, will also be closely tracked.

The recent decline in gold prices is attributed to a combination of factors, including the strong US dollar and rising interest rates. The Comex gold futures for December delivery declined $150.7, or 3.2 per cent, to settle the week at $4,680.6 per ounce. Silver futures also fell $2.56, or 3.64 per cent, to $67.78 per ounce.