Gold Fails to Break Range as Dollar and Geopolitics Take Center Stage
New Delhi-based analysts predict gold to remain volatile and range-bound in the coming week as traders track movements in the US dollar, developments in the West Asia conflict, and crude oil prices.
The focus will shift from monetary policy and geopolitical events to a fresh batch of economic data, including mid-month manufacturing and services Purchasing Managers' Index (PMI) readings from major economies.
Comex gold futures for December delivery ended marginally higher at USD 4,424.9 per ounce last week, while silver gained 3% to USD 67.15 in New York.
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, noted that MCX gold witnessed a weak opening near Rs 1.5 lakh per 10 gram but staged a strong recovery towards Rs 1.54 lakh per 10 gram as buying interest emerged at lower levels.
Investor demand has remained upbeat over the past 7-8 trading weeks, with continued inflows into gold exchange-traded funds across markets, according to Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd.