Gold prices are likely to see some corrections/ consolidation as ongoing fundamentals are already priced in and physical demand wanes post mid-week, Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, said.
He added that traders will monitor key global indicators, including Chinese data, UK inflation, provisional data on PMI from across regions, US consumer confidence and the Fed’s commentary ahead of the October 28-29 meeting. Mer added that gold ended last week on a positive note, supported by festive demand in India and strong ETF buying.
“However, a sharp corrective move was seen on Friday, amid profit-booking as the rally looks overstretched now,” he said.
Echoing similar views, Karthick Jongadla, investment manager on smallcase and Founder at Quantace Research, said, the rally was underpinned by a softer dollar, and easing bond yields, while lingering US-China trade noise and a US data/shutdown fog kept the safe-haven bid supported.
FAQs
Q1. What is current gold price?A1. Comex gold futures for December delivery had risen to a new record of USD 4,392 per ounce on Friday before finishing at USD 4,213.30 per ounce, down by USD 91.30, or 2.12 per cent.
Q2. When is US Fed meeting?
A2. The US Fed meeting is on October 28-29.