September Volatility Ahead for Gold and Silver Markets

Gold and silver markets are bracing for fresh volatility in September after a sharp correction that wiped out more than Rs 6,000 from gold prices.

The correction saw Gold futures for October delivery on the MCX fall by 3.8% to Rs 1.56 lakh per 10 grams, while Silver futures for September declined by 4% to Rs 2.36 lakh per kg.

Analysts say that investors will be tracking key economic data releases, including manufacturing and services PMI data from major economies, inflation figures from the Eurozone and Germany, and US non-farm payroll data due later in the week.

This data is expected to influence expectations over the Federal Reserve's September policy decision, with market participants attempting to price in the probability of a September Federal Reserve policy change, according to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.