Gold likely to stay range-bound amid focus on US GDP, inflation data

Gold prices are expected to remain range-bound in the near term as investors await a series of crucial US macroeconomic indicators — including GDP, inflation, and labour market data — that could offer clearer signals on the Federal Reserve’s interest-rate outlook, analysts said on Saturday.

Market participants are closely tracking high-impact data releases such as weekly jobless claims, consumer confidence readings, and the ISM Non-Manufacturing PMI. These indicators, along with the upcoming Personal Consumption Expenditures (PCE) inflation print, are expected to guide expectations ahead of the Fed’s December policy meeting.

“Gold prices may continue to see some consolidation as focus remains on US data ahead of the Fed’s December policy meeting,” said Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd. “Key events tracked would be US housing data, consumer confidence, weekly jobless claims, GDP, and the PCE inflation numbers.”

Analysts noted that although geopolitical tensions and global economic uncertainty continue to provide underlying support to bullion, a sustained breakout is unlikely unless the incoming US data significantly shifts expectations on interest-rate cuts. Higher interest rates generally weigh on gold by increasing the opportunity cost of holding the non-yielding asset.

With the Fed maintaining a data-dependent stance, traders are expected to remain cautious, keeping gold prices within a tight trading band in the coming sessions.