gold
Gold is trading above the $4,260 support level, and prices are likely to move sideways between the $4,500 resistance level and the aforementioned support level.
|
Support |
4260 | 4075 |
| Resistance | 4500 |
4660 |
Gold prices stabilized near $4,295 an ounce following the sharp selloff in the previous session, with the metal remaining under pressure from higher Treasury yields and a stronger dollar, while solid U.S. economic data and rising oil prices kept expectations for further Federal Reserve rate hikes alive. Gold remains highly sensitive to the outlook for U.S. monetary policy, particularly as persistently high energy prices could fuel inflationary pressures and lead markets to price in higher interest rates for longer, limiting the appeal of the non yielding metal.
U.S. dollar continued to rise to its highest level in nearly two months, supported by strong U.S. economic data and hawkish comments from Federal Reserve officials, which reinforced expectations that the rate-hiking cycle could continue. U.S. Treasury yields also jumped amid a sharp bond market selloff, with the 10-year yield reaching its highest level since July 2007, driven by higher oil prices, strong economic data, and continued hawkish signals from Fed officials. S&P Global data showed U.S. business activity accelerating for a fourth consecutive month in September at its fastest pace since July 2021, supported by strong growth in both services and manufacturing, further strengthening expectations that monetary policy will remain tight and that the Fed could raise rates again.
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