Gold likely to consolidate next week as US data, Fed meeting loom: Analysts

New Delhi: Gold prices are expected to witness some consolidation and mild correction next week as the recent record-breaking rally looks overstretched and physical demand eases after the festive rush, analysts said.

After hitting fresh highs in global and domestic markets, bullion may trade in a narrow range, with investors eyeing the US funding bill, key global data releases, and remarks from Federal Reserve officials ahead of the October 28-29 policy meeting, they added.

Last week, gold futures rose by Rs 5,644, or 4.65 per cent on the MCX. On the MCX, gold futures for December delivery hit a record of Rs 1,32,294 per 10 grams on Friday before closing at Rs 1,27,008, ending a five-day record streak.

On the global front, Comex gold futures for December delivery had risen to a new record of $4,392 per ounce on Friday before finishing at $4,213.30 per ounce, down by $91.30, or 2.12 per cent.

Meanwhile, silver futures for December delivery had bounced to hit a record of Rs 1,70,415 per kilogram. Later, the white metal prices remained elevated to close at Rs 1,56,604 per kg on the MCX.

Silver prices, in the past week, gained Rs 10,138, or 6.92 per cent, in the domestic futures market.

Comex silver futures for December delivery hit a record of $53.76 per ounce before retreating to $50.10 per ounce, down by 6 per cent on Friday.

Analysts expect gold and silver to witness some volatility next week, with the broader trend still positive, supported by macroeconomic uncertainty, central bank buying, and sustained investor interest in precious metals as a hedge against volatility.