Gold Prices Volatile Amid US Inflation Data and Rate Hike Expectations
The bullion markets are expected to remain volatile this week as investors weigh US inflation data against changing expectations for interest rates. The focus will be on the US Consumer Price Index (CPI) report for August, due on September 11.
US inflation numbers will be a key trigger for bullion markets, according to Pranav Mer, senior vice president at EBG - commodity & currency research, JM Financial Services Ltd. The outlook comes after gold and silver prices fell last week.
On the Multi Commodity Exchange, gold futures for October delivery dropped Rs 3,514 (2.2%) to Rs 1.52 lakh per 10 grams, while silver declined Rs 4,786 (nearly 2%) to Rs 2.37 lakh per kg. In the international market, Comex gold futures for December delivery dropped $53.3 (nearly 1.2%) during the week to end at $4,476.6 per ounce.
The movement in domestic gold prices was marked by sharp swings during the week. MCX gold witnessed volatile moves this week, with the first half seeing continued profit booking following last Friday's correction after the Fed indicated the possibility of a rate hike.