Gold Prices Poised to Stabilize with Festive Season Demand and Central Bank Buying

Gold has started October near $4,150 an ounce after underperforming in September due to high US Treasury yields and strong consumer spending. However, a softer-than-expected inflation reading has trimmed the probability of an interest rate hike from 6% to roughly 34%. The market is now focused on this week's crucial US jobs report for near-term policy trajectory.

Physical demand typically surges during peak festive months like October and November, while central banks also continue to buy gold. This support could help stabilize prices and potentially create a strong tailwind once clarity emerges on US inflation.