Gold is likely to remain volatile and range-bound in the coming week as traders track movements in the US dollar and bond yields, developments in the the Middle East conflict and the direction of crude oil prices.According to analysts, after a week dominated by monetary policy and geopolitical developments, investors are expected to turn their attention to a fresh set of economic data, including mid-month manufacturing and services Purchasing Managers’ Index (PMI) readings from major economies.At the same time, US housing data, durable goods orders and consumer sentiment readings due towards the end of the week will also be closely watched for cues on the monetary policy outlook and bullion demand, analysts said, according to PTI.
MCX gold gains over 1% last week
On the Multi Commodity Exchange (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.Silver futures also posted strong gains, rising Rs 6,629, or nearly 3 per cent, to end the week at Rs 2.41 lakh per kg.“MCX gold witnessed a weak opening last week 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,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said.He said the recovery came after a period of heightened volatility as markets assessed major macroeconomic and geopolitical developments.“With several key events now behind us, attention will gradually shift towards how markets price the next phase of monetary policy and geopolitical risks,” Trivedi told PTI.
Global gold prices consolidate
In global markets, Comex gold futures for December delivery ended marginally higher at $4,424.9 per ounce, while silver gained 3 per cent to $67.15 in New York.“Gold futures continued to trade steady as prices consolidated for the third straight week, but some bargain buying was seen at corrective levels in last couple of trading sessions to close the week in positive,” Pranav Mer, Senior Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, said.Mer said the US dollar index and US Treasuries pared some of their gains as oil prices reversed mid-week following the Federal Reserve’s 25-basis-point rate hike.Investor demand has remained strong over the past seven to eight trading weeks, with continued inflows into gold exchange-traded funds across markets, he added.Silver futures, meanwhile, tracked industrial metals, recovering from early declines and ending the week with strong gains.With major central bank events now over, attention will shift to the People’s Bank of China, which is expected to announce its monetary policy on Monday.Mer said rates are likely to remain unchanged, with the decision set to be among the factors watched by precious metals investors in the coming week.
