Gold has seen some bounce in the past couple of weeks, even as bond yields in the US surged late week.
"Gold prices continue to trade higher hovering near to around three-month highs, as a weaker dollar and a dip in U.S. yields on the back of weak U.S. economic data reported last week boosted metal's appeal. Dollar index fell to almost one week low: whereas U.S. 10-year Treasury yields retreated further from a more than one-month high hit last week.
Weak data from the U.S. gave further support to the metal prices, as retail sales and industrial production numbers missed the expectations in April. Also, fear of rising inflation are weighing on consumer sentiment, adding to concerns about how quickly the US economy will be able to recover from the pandemic, and pushing away any noise about the changes in interest rate. Economic calendar is muted for the day, although market participants will keep an eye on the FOMC minutes and preliminary Manufacturing and services PMI data expected from major economies, scheduled later in the week.
Also, RBI's latest tranche of the Sovereign Gold Bond(SGB) is starting from today for five days. Issue price for SGB Scheme 2021-22 is fixed at Rs 4,777 per gram, and a discount of Rs 50 per gram, less than the nominal value has been decided for the investors applying online. It is advised to invest in SGB or any other platform available like ETF or Digital gold based on one's risk appetite. Broader range on COMEX could be between $1820- 1880 and on the domestic front gold prices in India could hover in the range of Rs 47,750- 48,300, says Navneet Damani, VP - Commodities Research, Motilal Oswal Financial Services.
Gold's momentum will be driven by many factors, though volatility is not expected in the coming days.