Gold Price Outlook This Week: Investors Watch Dollar, Yields and Global Developments

Gold prices are likely to remain volatile this week as investors track movements in the US dollar and bond yields, developments in the West Asia conflict and changes in crude oil prices. Market analysts expect gold to remain within a relatively narrow trading range, although short-term fluctuations could continue.

Following a week dominated by monetary policy decisions and geopolitical developments, market participants are now turning their attention to a fresh round of economic data from major economies.

Key economic data in focus

Purchasing Managers` Index (PMI) data for the manufacturing and services sectors will be closely watched this week. Investors are also expected to track upcoming US housing-market data, consumer durable goods orders and consumer sentiment figures.

These indicators could provide further clues about the direction of monetary policy and the potential impact on demand for gold.

Gold gains on the MCX

On the domestic market, gold futures for October delivery on the Multi Commodity Exchange (MCX) gained ₹1,597, or 1.04%, last week, closing at ₹1.54 lakh per 10 grams.

Silver futures also recorded a strong weekly performance, rising by ₹6,629, or nearly 3%, to ₹2.41 lakh per kg.

Jatin Trivedi, Commodity and Currency Research Analyst at LKP Securities, said gold began the previous week on a weak note on the MCX, trading around ₹1.50 lakh per 10 grams. However, the metal recovered to ₹1.54 lakh as buying emerged at lower levels.

He said the recovery came after a period of significant volatility, as investors assessed the impact of macroeconomic and geopolitical developments.

Global gold prices remain firm

In international markets, December gold futures on the New York Comex ended slightly higher at $4,424.90 per ounce. Silver also gained around 3%, reaching $67.15 per ounce.

Pranav Mer, Senior Vice President – Commodity and Currency Research at JM Financial Services Ltd., said gold futures remained firm within a strong trading range for the third consecutive week.

He noted that buying at lower levels during the final two trading sessions helped the precious metal end the week on a positive note.

What investors should watch this week

Several factors could influence gold prices in the coming days. Investors will be watching:

- US dollar movements

- US Treasury bond yields

- Developments in the West Asia conflict

- Crude oil prices

- Manufacturing and services PMI data

- US housing-market indicators

- Consumer durable goods orders

- Consumer sentiment data

- Expectations around future monetary policy

With economic data and geopolitical developments continuing to shape market sentiment, gold could see further short-term volatility this week. Investors will be closely watching these indicators for signals about the precious metal`s next move.