The spot price of gold closed the week at $4,207.48 per ounce after a drop to $4,066.31 on Wednesday. Experts expect gradual increases next week.
The spot price of gold closed the trading week at $4,207.48 per ounce, after a week of high volatility in which the precious metal fluctuated more than $140 between its low and high, according to vietnam.vn. The price started on Sunday night at $4,142.40 and ended just $5 below the key resistance level of $4,200.
On Wednesday, gold hit its lowest level of the week at $4,066.31 per ounce. Selling pressure intensified after the minutes from the Federal Reserve's September meeting showed that most policymakers still expect another rate hike before the end of the year. This was compounded by the strength of the US dollar and rising Treasury bond yields.
On Thursday, prices recovered after a successful auction of 30-year Treasury bonds, which lowered yields from the morning highs. On Friday, gold recorded its largest weekly gain thanks to the weakening dollar, falling bond yields, and a drop in oil prices following progress in negotiations between the United States and Iran.
In the weekly Kitco survey, of 14 experts consulted, 7 (50%) predicted an increase in the price of gold next week, 2 (14%) anticipated a decline, and the remaining 5 (36%) expect sideways fluctuations or are hesitant to predict the direction.
Among individual investors, the Kitco survey collected responses from 206 participants: 93 (45%) expect increases, 77 (37%) foresee declines, and 36 (18%) bet on stability.
"Prices will rise," stated Darin Newsom, senior market analyst at Barchart.com.
Newsom notes that market fundamentals have not changed much and that if the US president maintains his stance of not conducting further airstrikes against Iran until after the midterm elections, energy prices could fall and facilitate a recovery in metals. Technically, the analyst believes that December gold futures are oversold and could indicate a short-term upward movement if they close above $4,187.10 per ounce, a level set on October 6. Prices remain well below the 45-day moving average, around $4,398 per ounce.
James Stanley, senior market strategist at Forex.com, shares this view and points out that this week's drop could indicate a period of reduced selling pressure. He highlights that after hitting lows, gold quickly attracted buyers and closed in positive territory. According to Stanley, while it is difficult to determine the exact low point, recent events suggest that buying continues to emerge around $4,000 per ounce.
Rich Checkan, president and chief operating officer of Asset Strategies International, also predicts an increase in the price of gold next week. He states that the expectation that the Federal Reserve will not raise rates at its October meeting could alleviate short-term pressure on the precious metal, although high Treasury bond yields and a stronger dollar remain factors limiting the rise.
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