Gold prices show recovery from two-month low
Following market fluctuations, spot gold climbed above $4,130 while investors monitor Fed decisions and economic data.
Spot gold climbed above $4,130 with a recovery process leaving behind two-month lows, as markets watch the Fed minutes and movements in bond yields.
Latest Status on Spot and Gram Gold
Following the two-month lows on October 7, gold rose above $4,130 on the morning of October 8 with reactionary buying. While spot gold trades around $4,132, December futures contracts rose to the $4,157 level, and spot gram gold in Turkey is situated around 6,500 TL.
Dollar and Bond Pressure
A strengthening dollar and rising US Treasury yields played a role in gold's recent decline. The dollar index approached an 18-month peak, while the 10-year US Treasury yield climbed above 5.3%.
Fed Minutes and Rate Expectations
The minutes of the Fed's September 15-16 meeting showed that all members supported raising the policy rate by 25 basis points to the 3.75%-4.00% range. The probability of a rate hike for December is priced at approximately 80%.
Critical Levels and Expert Opinions
According to Chris Weston, Head of Research at Pepperstone, gold needs to break above $4,275 for the current reaction to turn into a stronger bullish outlook. On the downside, $4,000 continues to act as a psychological threshold.
ETF Data and Global Demand
According to World Gold Council data, although gold closed September with an 8.5% drop, global gold ETFs saw net inflows of nearly $10 billion in September, and total ETF gold holdings reached a record level of 4,256 tons.