Analysts Predict Gold to Remain Range-Bound Next Week Amid Influences from Dollar Strength and West Asia Tensions.

Gold prices are expected to exhibit volatility and remain range-bound in the coming week, largely influenced by the movements in the US dollar and bond yields, as well as geopolitical tensions in West Asia and fluctuations in crude oil prices. Analysts suggest that after a week filled with pivotal monetary policy changes and significant geopolitical events, investors will closely monitor incoming economic data this week. Key indicators, including mid-month manufacturing and services Purchasing Managers’ Index (PMI) readings from major economies, along with US housing data, durable goods orders, and consumer sentiment readings, will provide further insights into the outlook for monetary policy and bullion demand.

On the Multi Commodity Exchange (MCX), gold futures for October delivery saw a gain of Rs 1,597, or 1.04%, closing at Rs 1.54 lakh per 10 grams. This increase followed a weak opening when prices hovered around Rs 1.5 lakh per 10 grams. The recovery indicates a resurgence of buying interest at lower levels, particularly as investors look to react to macroeconomic changes and geopolitical uncertainties. Similarly, silver futures climbed Rs 6,629, or nearly 3%, to finish the week at Rs 2.41 lakh per kilogram, as it tracked the movements of industrial metals.

In the global context, Comex gold futures increased slightly to USD 4,424.9 per ounce, while silver also rose by 3% to USD 67.15 in New York. Despite a steady trading phase, there has been a notable increase in investor demand for gold over the past several weeks, with continuous inflows into gold exchange-traded funds observed across various markets. With several major central bank announcements concluded, the focus now shifts to the People’s Bank of China, which is anticipated to maintain its current monetary policy. This upcoming decision may further influence market sentiments, particularly in relation to global gold demand.

Source: The Economic Times

(Expert Note: This intelligence brief was structured and verified by the Wealthova editorial desk.)