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The Emirates News Agency reported that spot gold held steady at $4,124.57 per ounce as of 01:40 GMT after reaching its lowest level since August 5 in the prior session. US gold futures declined 0.3 percent to $4,156.70 on the day. A Wall Street Journal dispatch noted that rising oil prices and robust US industrial activity data reinforced market expectations for the Federal Reserve to maintain higher interest rates for longer.
World Gold Council figures showed gold prices fell 2 percent last week to $4,261 per ounce extending the year-to-date decline to 2.4 percent. Strong US economic indicators combined with hawkish comments from Fed officials drove Treasury yields and the dollar higher which weighed on the non-yielding metal. The council’s weekly monitor highlighted that this macro environment has kept pressure on gold despite earlier gains in the year.
The Emirates News Agency added that among other precious metals spot silver dropped 0.6 percent to $60.62 per ounce while platinum eased 1 percent to $1,699.86 and palladium slipped 0.5 percent to $1,209.08. These moves occurred alongside the gold consolidation as broader commodity markets adjusted to the firmer dollar which rose 0.2 percent. A StoneX Bullion analysis attributed part of the recent selling to profit-taking by Chinese investors ahead of the Golden Week holiday.
According to the World Gold Council gold remains under pressure as US bond yields and real yields rise sharply with the dollar strengthening in tandem. The council identified immediate support around $4,203 per ounce followed by $4,196 per ounce and ultimately the year-to-date lows near $4,000. A sustained break below $4,231 per ounce would signal increased downside risk according to the council’s technical assessment.
Data from the World Gold Council placed net long positioning in gold at 23 percent in recent weeks with forward returns showing mixed performance over four and 12 weeks. The council noted that physical tailwinds including steady official sector interest and potential Indian demand ahead of Diwali provide some counterbalance. However hawkish Federal Reserve signals have dominated the near-term price action.
A USAGOLD daily market report indicated that physical gold slid to a seven-week low as an oil spike lifted rate-hike probabilities to around 70 percent for the next Federal Reserve meeting. The report tracked spot gold near $4,149 per ounce with silver falling below $62 in the same period. Market watchers continue to monitor upcoming Fed speakers for further clarity on the policy path.
