Gold may stay choppy ahead of US jobs data

#New Delhi

Gold prices are likely to remain volatile in the coming week but may find support as focus shifts to key US economic data releases, including jobs report and the Federal Reserve’s meeting minutes for fresh signals on the interest rate decision, analysts said. Investors will also closely watch Federal Reserve Chair Jerome Powell’s speech on Wednesday. Along with comments from other Fed officials throughout the week which will drive the gold prices.

“The precious metal rallied earlier in the week amid uncertainty over the impact of the 43-day US government shutdown on the economy, delayed data releases and the recent increase in money supply by the US Federal Reserve. “A weaker dollar also supported the gold up-move. Fed officials have signalled caution over further easing, citing worries about inflation,” Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, said. However, profit booking at elevated levels dragged gold lower on Friday. The yellow metal tumbled by Rs 3,190, or 2.52% , to close at Rs 1,23,561 per 10 grams on the MCX.

“Silver prices outperformed all the asset classes with a rally of over 12% in four trading sessions till Thursday, as traders jumped on the metal after it was added to the US critical minerals list in the previous week,” Pranav Mer of JM Financial Services Ltd, said. PTI