Gold Prices May Consolidate as Market Awaits US Data and Fed Meeting

Gold prices are likely to witness some consolidation or a possible correction in the coming week. Investors and traders are now turning their attention to important US economic data and the Federal Reserve’s upcoming meeting, where the possibility of interest rate cuts will be closely watched. The gold market is also likely to respond to global indicators and central bank signals.

According to Pranav Mer, Vice President at JM Financial Services, this week’s economic calendar includes key updates like US housing figures, inflation (CPI) data from the UK and Eurozone, and fresh reports on manufacturing and services activity from different regions. These statistics will play a big role in determining gold’s short-term direction, as they influence global market sentiment and currency movements.

Another factor affecting gold prices is the recent easing of safe-haven demand. After the US and China agreed to extend their trade negotiations for another 90 days, some of the uncertainty in global markets has decreased. As a result, gold’s upward momentum may take a pause as investors weigh new data and developments.