Gold prices held steady at $4,165 per ounce as a weak US dollar offset pressure from rising bond yields. The precious metal has now maintained this level for three consecutive weeks, finding support above the short-term low of $4,066 per ounce. The market remains influenced by US macroeconomic factors, particularly the September inflation report, which showed a 3.7% year-on-year increase in the Consumer Price Index (CPI) and a 6.3% surge in the Producer Price Index (PPI). These figures have strengthened expectations of a Federal Reserve interest rate hike in December, with an 89% probability.
The 10-year US Treasury yield climbed to 5.10%, while the 2-year yield stood at 4.75%, adding pressure on non-yielding assets like gold. However, the USD Index (DXY) pulled back to 101.87, easing some of the selling pressure. Technical analysis by FXEmpire expert Bruce Powers suggests that gold is attempting to reverse its downward correction, with higher weekly highs and lows signaling potential bullish momentum. However, the metal faces tight resistance near the 20-day moving average and the $4,226 per ounce peak.
A decisive breakout above $4,226 could confirm a bullish reversal, targeting $4,821 per ounce. Conversely, a breach of the $4,066 support level could push prices back to $4,000 or even the July lows around $3,959 per ounce. Silver and platinum also saw fluctuations, with silver trading between $56.97 and $57.25 per ounce, and platinum hovering around $1,613 to $1,619 per ounce. Analysts believe next week's US macroeconomic reports and bond market developments will be crucial in determining gold's next move.