Gold Prices Plunge Amid Geopolitical Tensions and Economic Indicators
Gold prices are likely to face volatility in September as investors track key economic indicators and geopolitical tensions, analysts say. The commodity markets have been on a wild ride this week, with gold futures for October delivery on the Multi Commodity Exchange (MCX) plummeting by Rs 6,157, or 3.8 per cent, to Rs 1.56 lakh per 10 grams.
The decline in gold prices was not limited to India, as international markets saw Comex gold futures for December delivery fall $150.7, or 3.2 per cent, to settle the week at $4,680.6 per ounce. Silver futures also took a hit, with silver futures falling $2.56, or 3.64 per cent, to $67.78 per ounce.
The volatility in gold prices is expected to continue into September as investors focus on manufacturing and services PMI data from major economies, including India's inflation figures from the Eurozone and Germany, and US non-farm payroll data due towards the end of the week.