Gold Prices to Stay Volatile as Investors Track US Funding Bill and Fed Signals
Market Outlook
Gold prices are expected to remain volatile this week, analysts said. Investors are watching the US government funding bill, labour market data, and Federal Reserve commentary. The release of the FOMC minutes on Thursday will also guide bullion sentiment.
Analyst Views
Pranav Mer of JM Financial Services said volatility will stay high. He noted profit-booking may rise, followed by renewed buying. The focus will remain on the funding bill and labour market data. Fed Chair Jerome Powell’s speech will be closely tracked.
Recent Performance
Gold gained 3.5–4% last week, supported by a weaker US dollar. Concerns over the partial US government shutdown also lifted prices. On the MCX, December gold futures surged ₹3,222, or 2.8%, to close at ₹1,18,113 per 10 grams. This was near the lifetime peak of ₹1,18,444 per 10 grams.
Global Trends
Globally, December gold futures rose 1.05% to $3,908.90 per ounce on Friday. They touched a record $3,923.30 per ounce on Thursday. Analysts said markets are also pricing in a possible Fed rate cut later this month.
Expert Insights
Jyoti Prakash of AlphaaMoney said gold’s appeal lies in steady gains. He cited rising ETF holdings, central bank demand, and speculative positions. Prathamesh Mallya of Angel One linked the rally to the US shutdown, Fed policy, and tariffs. India’s gold and silver imports nearly doubled in September ahead of the festive season.
Silver Rally
Silver also posted strong gains. On MCX, December silver futures rose ₹3,855, or 2.72%, to ₹1,45,744 per kg. They hit a record ₹1,46,975 per kg during the week. On Comex, December silver futures climbed 3.44% to $47.96 per ounce, touching a lifetime high of $48.32. Analysts said demand from solar panels, EVs, and electronics is driving the surge.
Outlook Ahead
Experts expect both gold and silver to remain volatile. Safe-haven demand, a weaker dollar, and geopolitical risks will support prices. Short-term profit-booking may add to fluctuations.
