Gold expected to remain range-bound amid focus on US GDP & inflation data: Analysts
New Delhi: Gold prices are expected to stay range-bound in the near term as investors await a series of key US economic data releases, including GDP and inflation, and signals from the Federal Reserve’s December policy meeting for clarity on interest rate trajectory, analysts said.
The focus will be on economic numbers such as weekly jobless claims, consumer confidence and ISM Non-Manufacturing PMI, which are expected to offer further clues on the Fed’s rate trajectory, they added.
“Gold prices may continue to see some consolidation (as focus remains) on the US data ahead of the Fed’s December policy meeting... Key events tracked would be US housing data, consumer confidence, weekly jobless claims, GDP, and the Personal Consumption Expenditures (PCE) inflation numbers,” Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd, said.
On the Multi Commodity Exchange (MCX), gold futures for December contract increased by Rs 630, or 0.51 per cent, over the past week.
Mer said the yellow metal witnessed extreme volatility last week, with price swings on both sides weighed by hawkish Fed official commentary, fading hope of a rate cut at the Fed’s December meeting, and a stronger greenback.
“The possibility of an end to Russia-Ukraine war trimmed some risk premium from bullion. On the other side, prices were supported by central bank buying with China adding gold for the 12th straight month and dumping US treasuries along with ETF inflows and injecting liquidity from major central banks,” he added.
In the international markets, Comex gold futures rose USD 51.4, or 1.25 per cent, during the week.
On the MCX, silver futures for December delivery declined Rs 1,867, or 1.12 per cent, in the past week. In the international markets, Comex silver futures fell 1.52 per cent.
With the Fed expected to maintain its cautious stance into early 2025 and the dollar staying firm, analysts believe gold could trade in a broader range in the near term, supported by safe-haven interest but capped by monetary policy uncertainty.
