Gold likely to stay range-bound amid US GDP and inflation data focus: Analysts

New Delhi, Nov 23: Gold prices are expected to stay range-bound in the near term as investors await a series of key US economic data releases, including GDP and inflation, and signals from the Federal Reserve’s December policy meeting for clarity on interest rate trajectory, analysts said.
The focus will be on economic numbers such as weekly jobless claims, consumer confidence and ISM Non-Manufacturing PMI, which are expected to offer further clues on the Fed’s rate trajectory, they added.
“Gold prices may continue to see some consolidation (as focus remains) on the US data ahead of the Fed’s December policy meeting… Key events tracked would be US housing data, consumer confidence, weekly jobless claims, GDP, and the Personal Consumption Expenditures (PCE) inflation numbers,” Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, said.
On the Multi Commodity Exchange (MCX), gold futures for December contract increased by Rs 630, or 0.51 per cent, over the past week.
Mer said the yellow metal witnessed extreme volatility last week, with price swings on both sides weighed by hawkish Fed official commentary, fading hope of a rate cut at the Fed’s December meeting, and a stronger greenback.
“The possibility of an end to Russia-Ukraine war trimmed some risk premium from bullion. On the other side, prices were supported by central bank buying with China adding gold for the 12th straight month and dumping US treasuries along with ETF inflows and injecting liquidity from major central banks,” he added.
In the international markets, Comex gold futures rose USD 51.4, or 1.25 per cent, during the week.
“Comex gold futures closed marginally higher, but the stronger dollar kept sentiment capped,” Pankaj Singh, Investment Manager on smallcase and Founder & Principal Researcher SmartWealth.ai, said.
The minutes from the latest Federal Open Market Committee (FOMC) meeting signalled that policymakers may keep rates elevated through 2025, slashing December rate-cut odds to 36 per cent. (PTI)