Volatile Week Ahead for Gold and Silver as US Jobs Data Looms

Gold and silver prices are expected to be volatile in the coming week as market participants react to US jobs data, inflation figures, and geopolitical developments. According to analysts, the direction of the dollar, labour-market data, Federal Reserve expectations, and geopolitical headlines will determine whether gold stabilises after a recent correction or enters another phase of profit booking.

The Multi Commodity Exchange (MCX) saw gold futures for October delivery tumble by 3.8% last week to Rs 1.56 lakh per 10 grams, while silver futures for the September contract declined by 4% to Rs 2.36 lakh per kilogram. Analysts say that market participants are trying to price in the probability of a September Federal Reserve policy change.

The US labour-market indicators, including non-farm payrolls, unemployment data, and the ADP non-farm employment change, will be closely monitored as they could influence expectations around the Federal Reserve's policy decision. Geopolitical tensions, particularly those between the US and Iran, may also impact commodity markets.