PTI New Delhi

Gold prices are expected to remain in a corrective phase in the coming week ahead of the crucial US inflation data, continuing uncertainties over trade tariffs and key economic numbers from China, analysts said.. Traders will also closely watch comments from US Federal Reserve officials for clarity on the monetary policy outlook, which is likely to steer the near-term direction for bullion prices, they added.

“Gold prices are expected to see some consolidation or more correction as focus will be on the inflation numbers, US Supreme Court hearing on tariffs, speeches from Fed officials, and Chinese data," Pranav Mer, vice president, EBG- Commodity & Currency Research, JM Financial Services, said. He said that although gold prices ended the week slightly lower, the metal is largely stuck in a range, capped on the upside by a stronger dollar and sluggish physical demand as retail buyers stayed away on the sidelines in anticipation of further price correction. However, Mer noted that the downside was capped by uncertainty over the US economic outlook as the federal government shutdown continues, delaying key macroeconomic data releases that could make Fed officials' task difficult when they meet next month. 

“Traders were on the sidelines as focus also remained on the US Supreme Court's decision on the legality of Trump's trade tariffs - the outcome is expected to increase volatility in the financial markets and more in gold,” Mer added. On the Multi Commodity Exchange (MCX), gold futures for December delivery slipped by Rs 165, during the past week, to settle at Rs 1,21,067 per 10 grams on Friday.