Gold Prices Set for Another Wild Ride Amid Fed Policy Uncertainty

Gold prices are expected to remain volatile in the coming week due to various market triggers. Analysts predict that bullion prices will be influenced by fresh economic indicators, including US non-farm payrolls and inflation data from major economies.

The Federal Reserve's policy decision in September is also a key factor that investors will monitor closely. 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.

Gold futures for October delivery on the Multi Commodity Exchange (MCX) fell ₹6,157, or 3.8 per cent, last week to ₹1.56 lakh per 10 grams. Silver futures for September delivery declined ₹9,893, or 4 per cent, to ₹2.36 lakh per kilogram.

US jobs data and the ongoing US-Iran conflict are expected to add uncertainty to commodity markets. Higher oil prices could complicate the inflation outlook and influence expectations about the Federal Reserve's monetary policy.