Gold, silver seen range-bound as focus shifts to US job numbers, Fed cues: Analysts

Gold and silver are expected to trade within a tight range this week as investors focus on upcoming economic data and the Federal Reserve's interest rate outlook, according to analysts. Traders will keep a close eye on US non-farm payrolls, the unemployment rate, and purchasing managers' index (PMI) figures from the US, UK, Eurozone, and Japan.

The focus remains on the US non-farm payrolls report for clues on the Federal Reserve's direction, with the August employment data being particularly crucial. Analysts Jateen Trivedi, VP Research Analyst at LKP Securities, noted that gold and silver futures will be influenced by US macroeconomic data and evolving expectations around the Fed's policy path.

MCX gold is projected to trade in the ₹1.40-1.44 lakh range per 10 grams in the near term, with its movement heavily dependent on US economic indicators. Domestic futures for August gold delivery saw a 1.1% decline, settling at ₹1.41 lakh per 10 grams, while silver futures for September fell 2.2%, closing at ₹2.17 lakh per kilogram.

Despite a weak US dollar and a sharp drop in crude oil prices, gold did not see significant buying interest, indicating cautious investor sentiment. In international markets, Comex gold futures for October delivery closed slightly lower in New York, and silver for the September contract slipped nearly 2% during the week. Analysts remain uncertain about the Federal Reserve's interest rate outlook, with policy makers offering no clear timeline for future moves.

Market participants will also watch speeches by Federal Reserve officials Lisa D. Cook and Thomas Barkin, as well as China's trade data, for more insights into the global economic outlook and bullion prices.