Gold Prices to Remain Volatile Amid Dollar, West Asia Tensions

Gold prices are expected to remain volatile and range-bound in the coming week as traders track movements in the US dollar, developments in the West Asia conflict, and crude oil prices.

According to analysts, investors will focus on a fresh batch of economic data, including mid-month manufacturing and services Purchasing Managers’ Index (PMI) readings from major economies. The data on US housing, durable goods orders, and consumer sentiment readings due to be released towards the end of the week will also be closely watched for cues on the outlook for monetary policy and bullion demand.

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, while silver futures gained Rs 6,629, or nearly 3 per cent, to end at Rs 2.41 lakh per kilogram.

Analysts note that the market has digested major macroeconomic and geopolitical developments, and attention will shift towards how markets price the next phase of monetary policy and geopolitical risks.