Gold may see volatile moves as traders await US Fed FOMC, tariff developments: Analysts

New Delhi: Gold prices may see heightened volatility in the coming week as investors track a crucial July 9 tariff deadline, policy signals from major central banks, including the US Federal Reserve, and key global macroeconomic data, analysts said.

“These factors could influence the near-term trajectory of gold prices,” analysts said, adding that traders are expected to remain cautious ahead of any major policy cues or geopolitical developments.

The 90-day suspension of Trump tariffs on imports from several countries, including India, ends on July 9, reviving the risk of a 26 per cent additional duty on Indian goods entering the US.

“Going ahead, the focus will be on the interest rate cuts by key central banks, especially US Fed Reserve, the outcome of trade negotiation between US and its trading partners, incoming global economic data, which could impact the near-term gold prices,” Pranav Mer, Vice President, EBG, Commodity & Currency Research at JM Financial Services Ltd, said.

Investors will also closely monitor the release of the US Fed’s FOMC (Federal Open Market Committee) meeting minutes. Last week, the precious metal futures for August delivery rose Rs 1,563, or 1.61 per cent, on the MCX.

N S Ramaswamy, Head of Commodities Desk and CRM at Ventura, said gold prices in the international market, currently at $3,345 per ounce, could remain under selling pressure due to the solid US macroeconomic data that dented hopes of a July interest rate cut by the Federal Reserve.

Despite some corrective rallies, Ramaswamy stated that “the short-term outlook favours consolidation and corrective upward movements, followed by a likely continuation of the broader downward trend”.

Ramaswamy, however, said fiscal deficit worries in the US and impending Trump tariffs decision could trigger fresh volatility and lift demand for the yellow metal.