New Delhi: Gold prices are expected to witness some consolidation and mild correction next week as the recent record-breaking rally looks overstretched and physical demand eases after the festive rush, analysts said.

After hitting fresh highs in global and domestic markets, bullion may trade in a narrow range, with investors eyeing the US funding bill, key global data releases, and remarks from Federal Reserve officials ahead of the October 28-29 policy meeting, they added. “Gold prices are likely to see some corrections/ consolidation as ongoing fundamentals are already priced in and physical demand wanes post mid-week,” Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd, said. He added that traders will monitor key global indicators, including Chinese data, UK inflation, provisional data on PMI from across regions, US consumer confidence and the Fed’s commentary ahead of the October 28-29 meeting.

Mer added that gold ended last week on a positive note, supported by festive demand in India and strong ETF buying. “However, a sharp corrective move was seen on Friday, amid profit-booking as therally looks overstretched now,” he said. Last week, gold futures rose by Rs 5,644, or 4.65 per cent on the Multi Commodity Exchange (MCX).

Prathamesh Mallya, DVP - Research, Non-Agri Commodities and Currencies, Angel One, said the shine in gold prices just does not stop as the momentum has been on the rising side throughout 2025, supported by policy uncertainty, US tariffs, and a slowdown in the American economy. On the MCX, gold futures for December delivery hit a record of Rs 1,32,294 per 10 grams on Friday before closing at Rs 1,27,008, ending a five-day record streak.

Echoing similar views, Karthick Jongadla, investment manager on smallcase and Founder at Quantace Research, said, the rally was underpinned by a softer dollar, and easing bond yields, while lingering US-China trade noise and a US data/shutdown fog kept the safe-haven bid supported. “Gold jumped to a new record this week. The MCX gold futures printed an intraday high of Rs 1,32,294 per 10 grams on October 17 and stayed firm into Dhanteras,” he said. Jongadla added that India’s gold reserves with the Reserve Bank of India (RBI) have now crossed $100 billion, reflecting strong institutional interest.

On the global front, Comex gold futures for December delivery had risen to a new record of $4,392 per ounce on Friday before finishing at $4,213.30 per ounce, down by $91.30, or 2.12 per cent. “Gold extended its meteoric rally to fresh record highs this week as investors rushed into safe haven assets amid renewed fears about cracks in the US financial system after two regional banks disclosed loan irregularities linked to potential fraud, reigniting worries over the health of borrowers,” Riya Singh, Research Analyst, Commodities and Currency, Emkay Global Financial Services, said.