8 hrs ago
Gold Expected to Stay Volatile and Range-Bound Next Week
Analysts think gold prices may move up and down without choosing a clear direction next week.
Traders will watch the US dollar and government bond yields.
They will also follow the conflict in West Asia and changes in oil prices.
New business activity reports from major countries are due soon.
US reports about homes, factory goods and consumer feelings will also be important.
These reports can affect guesses about future interest-rate decisions.
Gold prices on India's MCX rose last week, while silver prices also gained.
The People's Bank of China is expected to keep its interest rates unchanged on Monday.
Analysts expect gold to remain volatile and range-bound as traders monitor the US dollar, bond yields, West Asia conflict developments and crude oil prices.
Fresh manufacturing and services PMI readings from major economies will be released in the coming week.
US housing data, durable goods orders and consumer sentiment readings will provide clues about monetary policy and bullion demand.
MCX October gold futures rose Rs 1,597, or 1.04 per cent, last week to close at Rs 1.54 lakh per 10 grams.
The People's Bank of China is expected to announce its monetary policy on Monday, with rates likely to remain unchanged.
- Who
- Gold traders, investors and analysts, including Jateen Trivedi and Pranav Mer, are assessing the market outlook.
- What
- Gold is expected to remain volatile and range-bound as markets respond to economic data, monetary-policy expectations and geopolitical developments.
- Where
- The forecast concerns Indian MCX trading and global markets, including New York trading.
- When
- The outlook covers the coming week; the People's Bank of China is expected to announce its policy on Monday.
- Why
- Traders are watching the US dollar, bond yields, crude oil, the West Asia conflict and incoming economic data for clues about gold demand and monetary policy.
Key facts
- MCX October gold
- Rose Rs 1,597, or 1.04 per cent, last week to close at Rs 1.54 lakh per 10 grams.
- MCX silver
- Gained Rs 6,629, or nearly 3 per cent, to end at Rs 2.41 lakh per kilogram.
- Global gold
- December Comex gold futures ended marginally higher at USD 4,424.9 per ounce.
- Global silver
- Silver gained 3 per cent to USD 67.15 in New York.
- Upcoming data
- Major economies are due to release mid-month manufacturing and services PMI readings.
- US indicators
- Housing, durable goods orders and consumer sentiment data are due toward the end of the week.
- China policy
- The People's Bank of China is expected to announce its monetary policy on Monday, with rates likely unchanged.
Quotes
Jateen Trivedi
VP Research Analyst for Commodity and Currency at LKP Securities
“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”
deccanchronicle.com
“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”
deccanchronicle.com
Sources
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