Bullion Prices Set to Face Another Choppy Spell This Week

Bullion prices are expected to face another choppy spell in the holiday-shortened week ahead, according to analysts. Market participants will be keeping a close eye on US data releases, including consumer confidence, GDP, and PCE inflation readings, as well as Eurozone inflation figures. Additionally, manufacturing PMIs, speeches from Federal Reserve officials, and the US non-farm payrolls report will provide further cues for bullion sentiment.

The Commodity Exchange (Comex) gold futures for December delivery dropped $103.7, or 2.34 per cent, last week to $4,321.2 per ounce. Silver fell $2.35, or 3.5 per cent, to $64.80 an ounce in New York. On the Multi Commodity Exchange (MCX), gold futures for October delivery fell Rs 3,500, or nearly 2.3 per cent, last week to settle at Rs 1.5 lakh per 10 grams.

With markets closed on Friday for Mahatma Gandhi Jayanti, analysts expect the holiday-shortened week to be filled with uncertainty and volatility in bullion prices.