Gold prices are likely to remain volatile in the coming week, as investors track developments around the US government funding bill, labour market data and Federal Reserve commentary, analysts said.<\/p>\n
The release of the Federal Open Market Committee meeting minutes on Thursday is also likely to influence bullion market sentiment, they added.<\/p>\n
\u201dThe week ahead is relatively light on data, but volatility is expected to remain high with frequency to profit-booking likely to increase, followed by renewed buying as well. In the week ahead the focus will remain on voting for the US government funding bill, while on the data front it will be the labour market data, if released.
\n<\/p>\n
\n\u201dFederal Reserve official commentary will be closely watched with Fed Chair Jerome Powell\u2019s speech on Thursday,\u201d said Pranav Mer, Vice President, EBG \u2013 Commodity & Currency Research at JM Financial Services Ltd.<\/p>\n
Mer said gold prices added another 3.5-4% to its recent gains last week, buoyed by a weaker US dollar and rising concerns over the partial US government shutdown, which has delayed crucial macroeconomic data releases.<\/p>\n
\u201dMarket participants are also pricing in the possibility of a potential Fed rate cut later in the month,\u201d he added.<\/p>\n
On the Multi Commodity Exchange (MCX), gold futures for December delivery surged \u20b93,222, or 2.8%, in the past week. On Friday, the yellow metal closed at \u20b91,18,113 per 10 grams, near its lifetime peak of \u20b91,18,444 per 10 grams recorded earlier in the week.<\/p>\n
Jyoti Prakash, Managing Partner, Equity and PMS at AlphaaMoney, said gold prices rose 2.8% last week, noting that its appeal lies less in big gains and more in achieving them with modest drawdowns.<\/p>\n
\u201dRising exchange traded fund (ETF) holdings, likely renewed central bank demand, and stronger speculative positions are fuelling the breakout. Gold prices have disconnected from marginal production costs, with producer margins at the highest levels in 55 years,\u201d he noted.<\/p>\n
Echoing similar sentiments, Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One, said gold prices have touched lifetime highs in domestic markets. \u201dGold prices in India have climbed sharply in recent weeks, appearing unstoppable.\u201d Mallya attributed this to the US government shutdown, possible Fed rate cuts, and the impact of tariffs on various countries including India.<\/p>\n
\nReflecting robust domestic demand, India\u2019s gold and silver imports nearly doubled in September compared to August, ahead of the festive and wedding season, analysts said.<\/p>\n
Globally, gold futures for December delivery rose 1.05% to settle at USD 3,908.90 per ounce on Friday, touching a record of USD 3,923.30 per ounce on Thursday.<\/p>\n
Riya Singh \u2013 Research Analyst, Commodities and Currency at Emkay Global Financial Services, said gold extended its rally to a fresh all-time high last week, marking its fifth consecutive session of gains, and reinforcing its status as the preeminent haven amid US political and monetary turbulence.<\/p>\n
\u201dThe immediate catalyst was Washington\u2019s failure to pass a government funding package, forcing an \u2019orderly shutdown\u2019 of government operations for the first time in seven years. This threatens delays to crucial macroeconomic data releases such as Friday\u2019s non-farm payrolls report and has clouded visibility on the US outlook, while adding pressure on the dollar,\u201d Singh said.<\/p>\n
Singh further stated that \u201dGold\u2019s year-to-date performance has been exceptional, with bullion prices rising more than 46%, the largest annual gain since 1979\u201d.<\/p>\n
\u201dThe surge has been driven by strong inflows into gold-backed ETFs, and heightened safe-haven demand amid concerns over Federal Reserve independence. The dollar\u2019s gains remain capped by expectations of two more Fed rate cuts, while geopolitical tensions in Europe keep bullion attractive,\u201d she added.<\/p>\n
Silver futures also witnessed a strong rally last week. The white metal for December delivery bounced by \u20b93,855, or 2.72%. It surged to end at \u20b91,45,744 per kilogram on Friday, after touching an all-time high of \u20b91,46,975 per kg.<\/p>\n
\u201dSilver continues to outperform gold, extending its multi-month rallies. In September, both MCX and Comex futures recorded consecutive gains. The white metal has surged 34%, marking five straight months of positive performance,\u201d said Pankaj Singh, investment manager in Smallcase and Founder and Principal Researcher at SmartWealth.ai.<\/p>\n
On the global front, Comex silver futures for December delivery rose 3.44% to settle at USD 47.96 per ounce, reaching a lifetime high of USD 48.32 per ounce on Friday.<\/p>\n
Singh noted that silver\u2019s superior momentum is supported by its dual role as a monetary and industrial metal. \u201dStrong demand from solar panels, EVs, and electronics coupled with persistent supply deficits, is keeping the markets tight,\u201d he said.<\/p>\n
Pranav Mer of JM Financial Services expects domestic silver prices to remain volatile but retain an upside bias. \u201dSilver continues to outperform gold and momentum is expected to remain positive, with potential near-term levels in the range of \u20b91,50,000-1,70,000 per kg.\u201d Looking ahead, analysts said gold to remain supported by safe-haven demand, a weaker US dollar, and global geopolitical uncertainties, with intermittent profit-booking providing volatility but not derailing the ongoing uptrend.<\/p>\n","protected":false},"excerpt":{"rendered":"Gold prices are likely to remain volatile in the coming week, as investors track developments around the US…\n","protected":false},"author":2,"featured_media":62064,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[72,42861,42859,17739,42857,1387,61,60,123,42860,16524,42858],"class_list":["post-62063","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-etf-inflows","tag-federal-reserve-commentary","tag-gold-futures","tag-gold-market-volatility","tag-gold-prices","tag-ie","tag-ireland","tag-markets","tag-safe-haven-demand","tag-silver-prices","tag-us-government-funding-bill"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/62063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=62063"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/62063\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/62064"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=62063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=62063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=62063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}