Gold prices are likely to remain volatile in the coming week, as investors track developments around the US government funding bill, labour market data and Federal Reserve commentary, analysts said. The release of the Federal Open Market Committee meeting minutes on Thursday is also likely to influence bullion market sentiment, they added.

 “The week ahead is relatively light on data, but volatility is expected to remain high with frequency to profit-booking likely to increase, followed by renewed buying as well. In the week ahead the focus will remain on voting for the US government funding bill, while on the data front it will be the labour market data, if released.  “Federal Reserve official commentary will be closely watched with Fed Chair Jerome Powell's speech on Thursday,” said Pranav Mer, Vice President, EBG - Commodity & Currency Research at JM Financial Services.

 Mer said gold prices added another 3.5-4% to its recent gains last week, buoyed by a weaker US dollar and rising concerns over the partial US government shutdown, which has delayed crucial macroeconomic data releases. “Market participants are also pricing in the possibility of a potential Fed rate cut later in the month,” he added.

 On the Multi Commodity Exchange (MCX), gold futures for December delivery surged Rs 3,222, or 2.8%, in the past week. On Friday, the yellow metal closed at Rs 1,18,113 per 10 grams, near its lifetime peak of Rs 1,18,444 per 10 grams recorded earlier in the week. Jyoti Prakash, Managing Partner, Equity and PMS at AlphaaMoney, said gold prices rose 2.8 % last week, noting that its appeal lies less in big gains and more in achieving them with modest drawdowns.