Gold and Silver Prices Bracing for Fresh Volatility in September

Gold and silver prices are bracing for fresh volatility as US jobs data, Federal Reserve rate expectations, and geopolitical tensions take center stage. The precious metals entered September under pressure after a sharp weekly sell-off, with gold futures for October delivery on the Multi Commodity Exchange (MCX) tumbling Rs 6,157, or 3.8 percent, to Rs 1.56 lakh per 10 grams.

Investors will focus on manufacturing and services PMI data from major economies, including India, as well as inflation figures from the Eurozone and Germany, and US non-farm payroll data due towards the end of the week. The Federal Reserve's decision-making ahead of its September meeting will also be closely tracked.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, 'The coming week is likely to remain highly volatile, with market participants attempting to price in the probability of a September Federal Reserve policy change.'

Pronav Mer, Senior Vice President, EBG - Commodity & Currency Research at JM Financial Services Ltd, added that selling pressure intensified on Friday following Federal Reserve Chair Kevin Warsh's speech, triggering profit booking across bullion markets.