Gold prices expected to witness further consolidation amid central bank meets & global trade talks: Analysts

New Delhi: Gold prices are expected to witness further consolidation in the coming week as investors brace for a slew of events, ranging from central bank meetings, including the US Federal Open Market Committee (FOMC) meeting’s outcome, to global trade negotiations, analysts said.

Traders will also closely watch macroeconomic data, including Personal Consumption Expenditures (PCE) inflation numbers, employment data from the US, manufacturing PMI numbers from across regions and developments related to the August 1 trade deal deadline. August 1 marks the end of the suspension period of Trump tariffs imposed on dozens of countries, including India.

On the domestic front, gold futures for October delivery corrected from a recent high of Rs 1,01,543 to Rs 98,764 per 10 grams, down by 2.74 per cent on the MCX.

Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said that volatility in the rupee owing to tariff-related uncertainties may offer limited support to the bullion prices in the domestic market.

On the global front, Comex gold futures for August delivery slipped by $37.90 or 1.12 per cent to close at $3,335.60 per ounce in New York. N S Ramaswamy, Head of Commodity & CRM, Ventura, said gold saw a sharp drop from $3,438 to $ 3,335.60 per ounce amid an extended tariff truce between the US and China, which has added to this sentiment.