Gold Prices Rebound 1.5% To One-Week High As Bargain Buying Lifts Bullion To $4,194 per Ounce
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Spot gold rose 1.5% to $4,194.36 per ounce on 9 October, targeting a 1.3% weekly gain. December US gold futures settled 1.4% higher at $4,216.30.
Gold prices rose for a second consecutive session on 9 October. Investors returned to the market after bullion fell to a two-month low earlier in the week. The recovery also put gold on course for a weekly gain as traders assessed the possibility of further Federal Reserve interest rate increases.
Spot gold climbed 1.5% to $4,194.36 per troy ounce on Friday. Prices were on track to gain around 1.3% over the week. Meanwhile, US gold futures for December delivery advanced 1.4% to settle at $4,216.30 per ounce.
US Dollar And Interest Rates Remain Key Drivers
Gold had come under pressure earlier in the week as a stronger US dollar and rising Treasury yields reduced its appeal. The metal does not generate interest income, making it less attractive when returns on interest-bearing assets increase. US 10-year Treasury yields subsequently eased from the highs recorded on Wednesday.
Market participants are also monitoring the Federal Reserve’s next policy decisions. Traders were pricing in a 19% probability of an interest rate increase in October and an 84% chance of at least one 25-basis-point increase by December, according to the CME FedWatch tool.
Investors are now looking towards the upcoming US consumer price index (CPI) inflation report for further direction. Persistent inflation could prompt the Federal Reserve to maintain a tighter monetary policy. This may put renewed pressure on gold and bring the $4,000-per-ounce level back into focus.
Indian Demand Remains Subdued As Other Metals Advance
Gold purchases in India remained muted during the week as prices recovered. Trading activity in China, another major gold-consuming market, was also subdued during a holiday-shortened period.
Other precious metals also recorded gains on Friday. Spot silver rose 2.4% to $60.77 per ounce, while platinum advanced 3.1% to $1,685.64. Palladium gained 2.1% to $1,146.39 per ounce. Despite these daily increases, platinum and palladium were heading towards weekly losses.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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