Gold prices are likely to witness a phase of consolidation in the coming week as traders weigh a mix of global economic indicators, cues from central banks and shifting geopolitical dynamics, analysts said on Sunday. 

Traders will monitor US housing numbers, consumer price data from the UK and Eurozone, and provisional PMI releases from key economies.

Also, investors will closely track European Central Bank's President Christine Lagarde speech as well as commentary by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, which will provide further insights for the broader trajectory of the bullion prices, they added. “Gold prices are likely to see some consolidation/correction in the coming week as focus now remains on the incoming US macroeconomic data and the Federal Reserve's meeting next month with interest rate cuts in focus.

“In the week ahead the focus will be on US housing data, CPI numbers from the UK and the Euro zone and the provisional data on manufacturing/ services PMI from across regions,” Pranav Mer, vice president, EBG-commodity and currency research at JM Financial Services, said.

Pranav Mer noted that safe-haven demand has eased after Washington and Beijing agreed to extend trade negotiations for another 90-days.   According to Mer, weaker US macroeconomic data have highlighted a slowdown in the economic activity, but a firm producer and import price data have kept inflation concerns alive, leaving Fed officials divided on the timing of interest rate cuts.  

Last week, the most traded gold futures for October contract declined by Rs 1,648 per 10 grams or nearly 2 per cent on the Multi Commodity Exchange.