Gold Prices to Remain Volatile Amid Geopolitical Tensions
Gold prices may remain volatile and range-bound in the coming week as investors track developments in the US dollar, bond yields, the Middle East conflict, and crude oil prices. Analysts expect a shift in focus towards economic data, including mid-month manufacturing and services Purchasing Managers' Index (PMI) readings from major economies.
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. Silver futures also posted strong gains, rising Rs 6,629, or nearly 3 per cent, to end the week at Rs 2.41 lakh per kg.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, the recovery in gold prices came after a period of heightened volatility as markets assessed major macroeconomic and geopolitical developments. He added that attention will gradually shift towards how markets price the next phase of monetary policy and geopolitical risks.