Gold Market
China's central bank added gold for a 23rd consecutive month in September, taking holdings to 77.47 million ounces, even as forex reserves slipped to $3.4 trillion on dollar strength.
Gold rose above $4,150 in European trade on Tuesday, bouncing from a two-month low near $4,100. A pause in the dollar’s rally and receding Fed rate-hike bets offered support, but headwinds persist.
Gold fell to a one-week low on Thursday as a stronger US dollar and rising bond yields reduced the metal’s appeal. Higher oil prices added to the headwinds.
Analysts expect gold to trade in a narrow range next week as markets shift focus to manufacturing and services PMI data from major economies, with the dollar and geopolitical tensions also in view.
Gold rises 0.89% to $4,379 as oil prices ease, despite a Fed rate hike that had driven the metal to a two-month low. Key resistance sits at $4,400.
Gold prices fell more than 1% after the US Federal Reserve raised interest rates and signalled further increases, pushing the dollar higher and pressuring non-yielding bullion.
Gold trades in a narrow range just above $4,300 as a resilient US dollar and expectations of hawkish decisions from the Fed, BoE, and BoJ this week cap gains.
Spot gold gained 0.6% to $4,381.32 as a subdued dollar and renewed US-Iran tensions supported prices. Investors now await US inflation data for the next rate move.
Jefferies warns that sustained upward pressure on US Treasury yields could create a difficult backdrop for equities, particularly REITs. It stays bullish on gold and gold miners as a hedge against dollar debasement.