Gold prices are expected to witness some consolidation and mild correction next week as the recent record-breaking rally looks overstretched and physical demand eases after the festive rush, analysts said.

After hitting fresh highs in global and domestic markets, bullion may trade in a narrow range, with investors eyeing the US funding bill, key global data releases, and remarks from Federal Reserve officials ahead of the October 28-29 policy meeting, they added.

"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, 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. Last week, gold futures rose by Rs 5,644, or 4.65 per cent on the MCX.  Prathamesh Mallya, DVP - Research, Non-Agri Commodities and Currencies, Angel One, said the shine in gold prices just does not stop as the momentum has been on the rising side throughout 2025, supported by policy uncertainty, US tariffs, and a slowdown in the American economy. On the MCX, gold futures for December delivery hit a record of Rs 1,32,294 per 10 grams on Friday before closing at Rs 1,27,008, ending a five-day record streak.