Gold Price Volatility: Major volatility forecast for gold prices! Investors eye US jobs data and Fed meeting

Gold Price Volatility: Gold prices are likely to remain highly volatile in the coming week but may also find some support. Market analysts indicate that the focus is now shifting towards key US economic data releases. These include the jobs report and the minutes from the Federal Reserve’s meeting, which could provide fresh signals on the interest rate decision. It is believed that the trajectory of gold prices will be determined based on these data points.

Investors will also be closely watching the speech by Federal Reserve Chair Jerome Powell on Wednesday. According to analysts, comments from other Fed officials throughout the week will also drive gold prices. All these factors combined could create a choppy situation in the market.

Key Factors That Will Influence the Market

According to experts, the volatility in gold prices is expected to increase this week. However, the price may also find some support. The market will primarily focus on a few key factors:

• US Jobs Report: This report will provide an idea about the health of the American economy. If the jobs data is strong, the Federal Reserve might lean towards hiking interest rates, which could be negative for gold.
• Federal Reserve’s Meeting Minutes: The minutes from the previous Fed meeting could offer hints about their future plans regarding interest rates.
• Fed Officials’ Speeches: Comments from Federal Reserve Chair Jerome Powell and other officials will influence market expectations about monetary policy, which will have a direct impact on gold prices.

Expert Opinion

Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services Ltd, said, “The volatility is expected to remain high, but prices may find some support… Focus will be on the US economic data releases, which may give some clues on the health of the American economy & possible some direction on the Fed’s rate outlook.” According to him, these data points will help investors determine their next steps. Therefore, this week is going to be extremely crucial for investors, as they will need to keep a close watch on all these indicators to understand the market’s direction.

Disclaimer: This article is for informational purposes only. It is not investment advice. Please consult with your financial advisor before making any investment decisions.