Gold prices saw a volatile trading day, marked by periods of both gains and losses. Market analysts attribute the fluctuations to a number of interconnected factors. Currency volatility, particularly in the US dollar, played a significant role, as gold is often seen as a hedge against currency devaluation.

In addition, investors are keenly awaiting the release of key economic indicators later this week. These indicators, including inflation figures and employment data, are expected to provide further insight into the health of the global economy. The anticipation surrounding these releases is contributing to the current market uncertainty and impacting gold prices.

Some analysts suggest that geopolitical tensions are also lending support to gold, as investors seek safe-haven assets during times of global instability. However, rising interest rates could potentially dampen demand for gold, as it offers no yield compared to interest-bearing investments.