Gold Prices to Remain Volatile Amid Dollar, Geopolitical Tensions

Gold prices are expected to remain volatile and range-bound in the coming week as traders focus on movements in the US dollar, developments in the West Asia conflict, and crude oil price direction.

The past week was dominated by monetary policy and geopolitical events, and investors will now turn their attention to a fresh batch of economic data, including mid-month manufacturing and services Purchasing Managers' Index (PMI) readings from major economies.

Key releases include US housing, durable goods orders, and consumer sentiment readings, which are expected to provide cues on monetary policy outlooks and bullion demand.

In India, MCX gold futures for October delivery rose Rs 1,597, or 1.04 per cent, last week to close at Rs 1.54 lakh per 10 grams, while silver futures gained Rs 6,629, or nearly 3 per cent, to end at Rs 2.41 lakh per kilogram.

Analysts believe that the recovery in gold prices was due to bargain buying at corrective levels, and with several key events now behind us, attention will shift towards how markets price the next phase of monetary policy and geopolitical risks.