Latest situation in gold prices: Fed expectations and expert views

Gold prices started the new week with an increase amid expectations that the Fed will pause its interest rate hikes in October, with the ounce price trading around 4,175 dollars. However, while optimism among experts participating in the Kitco survey has weakened, markets are closely monitoring central bank decisions and geopolitical developments.

Latest Situation in Markets and Fed Expectations

Gold prices recorded an increase in early Asian trading on Monday, October 19, and stood at the 4,175 dollar level per ounce as of 04.29 TRT. Although the weakening of October rate hike expectations supports buying, this does not indicate that selling pressure has completely ended. In the markets, the Fed is expected to leave interest rates unchanged at its October 27-28 meeting, while the possibility of a new rate hike in December remains on the agenda.

Expert Surveys and Investor Trends

Among the 12 experts participating in Kitco's October 17 survey, four expected an increase, two expected a decrease, and six participants predicted a sideways course or did not make a clear directional forecast. The expectation of an increase was 33 percent, the expectation of a decrease was 17 percent, and the sideways course or uncertainty was at 50 percent. In the previous survey on October 10, the rate of those expecting an increase was at the 50 percent level. Among the 139 individual investors participating in the online voting, those expecting a decrease were 45 percent, those expecting an increase were 43 percent, and those expecting a sideways course were 12 percent.

Technical Levels and Global Factors

In the technical outlook, a daily close rising above 4,185 dollars is monitored for the strengthening of the recovery, with the approximately 4,240 dollar region, where the 100-day moving average is located, standing out. In downward movements, the lower Bollinger band at approximately 4,054 dollars is followed as a support area. On the other hand, UBS pointed out that high US real interest rates and a strengthening dollar could create pressure in the short term, while according to World Gold Council data, China added 23 tons of gold to its reserves in September.