Gold Fails to Find Footing Amid Hawkish Fed Expectations
Gold prices saw a difficult week, struggling to stabilize above $4,350. The yellow metal kicked off the week at $4,383.44 per ounce on Sunday evening but was quickly overwhelmed by higher Treasury yields, hawkish Federal Reserve expectations, and persistent inflation concerns tied to energy prices and the U.S.-Iran conflict.
The price of gold broke below $4,300 and set its weekly low of $4,244.63 per ounce on Thursday before bargain-hunting emerged near the lower end of the week's range. Gold recovered modestly on Friday as oil prices eased on renewed hopes for a U.S.-Iran deal that could reopen the Strait of Hormuz.
The latest Kitco News Weekly Gold Survey showed Wall Street with no clear conviction on gold's near-term direction, while Main Street maintained its bullish majority despite gold's weak weekly performance. Some experts believe that the market is due for a dip to buy, citing the consolidation phase after gold's remarkable run above $5,000.
Next week will feature a raft of employment data, along with snapshots of the manufacturing sector and the health of the American consumer. The economic news week wraps up Friday morning with the publication of the Nonfarm Payrolls report for September.