Agencies NEW DELHI 

Gold prices are expected to remain volatile in the coming week as traders weigh domestic festive demand and physical market premiums to key macroeconomic data release and political developments in the US, analysts said.

“The focus will be on the physical demand for bullion during the festive season in India along with global political and geo-political developments, particularly the passage of the US spending bill and efforts to resume diplomacy on ending the Russia-Ukraine war. These factors are likely to shape gold price trends in the coming months,” Pranav Mer, Vice President, EBG-Commodity & Currency Research, JM Financial Services, said. He said that gold prices closed yet another week on a positive note, but volatility remained elevated with sharp corrections followed by renewed buying at lower levels. This was expected and will continue as the bulls & bears fight out at market tops.

“There has not been much change on the fundamental side with uncertainty over the US trade tariffs still being in place. President Donald Trump's announcement to levy tariffs on China has again pushed up safe haven demand,” he said.

Last week, prices rallied by Rs 3,251, hitting a record of Rs 1,23,677/10 grams on Thursday. However, the rally appeared to take a temporary breather towards the week's close on the MCX. 

“Gold prices have had an astonishing rally in recent months, with a year-to-date gain of more than 50% in 2025.  This prompted investors to take profits on Thursday, triggering a price correction of more than Rs 3,000, which contributed to extreme volatility in the yellow metal," Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One, said.