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Investors Eye Economic Data for Gold's Next Move
20 Sep
Summary
- Investors await US housing, manufacturing, and services data.
- Gold and silver futures saw gains last week on MCX.
- Gold ETFs continue to see firm investor demand.
Gold prices are poised for another week of fluctuating trading, likely consolidating within a tight range. Investors are carefully evaluating the U.S. dollar and government bond yields, alongside renewed uncertainties stemming from the West Asia conflict and its impact on oil markets.
With major monetary policy decisions and geopolitical events largely factored into market prices, attention is now shifting to a series of upcoming economic indicators. Early readings on manufacturing and services activity across key global economies are anticipated to provide fresh insights into the global economic outlook.
Specifically, U.S. data concerning housing market activity, durable goods orders, and consumer sentiment are due later this week. These reports are expected to shape market expectations regarding monetary policy adjustments and offer direction for gold prices.
On the Multi Commodity Exchange (MCX), gold futures for October delivery concluded the previous week with a gain of 1.04%, settling at Rs 1.54 lakh per 10 grams. Similarly, silver futures saw an increase of nearly 3%, closing at Rs 2.41 lakh per kg.
In international markets, Comex gold futures for December delivery experienced a marginal increase, closing at USD 4,424.9 per ounce, while silver futures gained approximately 3% to USD 67.15 an ounce.
Investor demand for gold has remained robust, evidenced by continuous inflows into gold exchange-traded funds across various markets for the past seven to eight weeks. Market participants are also monitoring the People's Bank of China's monetary policy decision, with rates widely expected to remain unchanged.
