Gold Prices See Volatile Moves Amid Profit-Booking and Rate Hike Signals
Gold prices saw volatile moves in the first half of the week due to profit-booking and the Federal Reserve's indication of a possible rate hike.
The price of gold traded lower after reaching a recent peak on September 4, hovering just above $4,550 per ounce. Comex futures gold declined to just below $4,413 per ounce on Friday but quickly recovered some losses to trade at $4,470 per ounce (14:11 GMT), down 1.54 percent from its previous close.
Commodity analysts suggest that the top five factors to watch for gold price movement are the US Fed rate outlook, the dollar and Treasury yields, US economic data, central bank buying and geopolitical risks, and rupee movement and domestic demand.
The US Federal Reserve's rate hike signals can pressure bullion. On the other hand, a weaker dollar and lower bond yields tend to support gold. The upcoming US nonfarm payrolls report and inflation data will be crucial in determining whether signs of labor-market cooling are sufficient to keep the Fed on hold.