Spot gold endured a volatile week, opening above $4,200 an ounce before being sold off to $4,073 an ounce and then recovering toward the end of the week. The swings left analysts all but unable to reach a consensus forecast for the coming week.<\/p>\n
According to a Kitco News survey of bank executives, analysts and investors, only 33% of participants expect gold prices to rise next week, 17% forecast a decline, and the remaining 50% believe the precious metal will trade sideways or chose to stay on the sidelines.<\/p>\n
Selling pressure stemmed from a stronger U.S. dollar and rising bond yields. U.S. September inflation data worsened the picture, with producer prices posting their biggest increase in four and a half years and consumer prices continuing to accelerate. The market fears the Fed may raise interest rates further, a headwind for non-yielding assets such as gold.<\/p>\n
By the end of the week, however, the precious metal had clawed back part of its losses after Fed Chair Kevin Warsh gave no signal of a rate hike in October. According to CME’s FedWatch tool, most investors expect the Fed to hold rates steady in October, while the probability of a rate increase in December is priced at around 90%.<\/p>\n
Table: Spot gold price action during the week<\/p>\n
TimingPrice (USD\/ounce)NoteStart of weekAbove 4,200Broke through key psychological levelMidweek4,073Selloff on stronger dollar, rising yieldsOct. 17 close4,165.40Down 0.13% on the dayDecember futures4,186.70Up 0.40%<\/p>\n
Source: Compiled market data<\/p>\n
Among the optimists, James Stanley, senior market strategist at Forex.com, acknowledged that prices could correct further as the chart forms a downtrend but kept a positive view. He sees the $4,000 mark as the most notable support level.<\/p>\n
Alex Kuptsikevich, senior analyst at FxPro, said the market may hinge on the U.S. political backdrop as the midterm elections take place in a few weeks. “Investors typically want to reduce political risk during this period. That is favorable for gold in the coming weeks,” he said, forecasting the precious metal could be pushed into the $4,400-$4,500 range.<\/p>\n
On the other side, Adam Button, head of currency strategy at investingLive, is skeptical of the rate path. “I find it hard to imagine the Fed will raise rates by a total of just 70 basis points as the market expects. This week’s inflation data is a big problem, but it is being downplayed because of concerns about AI-related borrowing,” he said.<\/p>\n
Fawad Razaqzada, an analyst at StoneX Bullion, was also cautious even as gold recovered from midweek. “There is no clear signal that the correction is over. For me, at least in the short term, gold prices are still slightly lower. The precious metal has held support around $4,100, but resistance above remains very firm,” he said.<\/p>\n
Some other experts see no sufficiently strong catalyst. Colin Cieszynski, market strategist at SIA Wealth Management, said he is “neutral on gold for next week” and noted the precious metal appears to be oscillating around $4,200. Next week also brings less economic data, shifting attention to corporate earnings reports.<\/p>\n
Adrian Day, president of Adrian Day Asset Management, expects gold prices to be little changed and to continue fluctuating within a narrow range. In his view, the most plausible catalyst is an end to the fighting, which would weaken the dollar and lower oil prices.<\/p>\n
Alongside gold, other precious metals posted mixed moves. Spot silver fell 0.77% to $56.99 an ounce, platinum rose 0.24% to $1,634.60 an ounce, while palladium dropped 1.20% to $1,115 an ounce.<\/p>\n
On the data front, the U.S. releases few major economic indicators next week. Investors will watch reports including September housing starts, building permits and pending home sales, along with weekly jobless claims, manufacturing and services indexes and consumer confidence.<\/p>\n
Analysts said the dollar’s moves, U.S. Treasury yields and upcoming economic data will remain key factors guiding gold prices. With inflation still stubborn, the outlook for the precious metal is expected to face further volatility, and the split among experts reflects the current level of uncertainty in the market.<\/p>\n","protected":false},"excerpt":{"rendered":"Spot gold endured a volatile week, opening above $4,200 an ounce before being sold off to $4,073 an…\n","protected":false},"author":2,"featured_media":650417,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[292341,292347,292348,292339,114,292345,292343,3065,292338,292340,85,292342,46,292337,118946,13269,292346,292344],"class_list":["post-650416","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-adam-button","tag-adrian-day","tag-adrian-day-asset-management","tag-alex-kuptsikevich","tag-business","tag-colin-cieszynski","tag-fawad-razaqzada","tag-fed","tag-forex-com","tag-fxpro","tag-il","tag-investinglive","tag-israel","tag-james-stanley","tag-kevin-warsh","tag-kitco-news","tag-sia-wealth-management","tag-stonex-bullion"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/650416","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=650416"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/650416\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/650417"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=650416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=650416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=650416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}