Gold Prices Rebound but Still Face Short-Term Correction

World gold prices rebounded in the last session of the week, recovering some buying power after being under pressure for several sessions. The spot price of gold at 4 am Vietnam time was $4,348.93 per ounce, up 0.75%. December gold futures fell 0.39% to $4,390 per ounce.

The rebound in gold prices was partly due to the decrease in oil prices, which reduced pressure on precious metals. However, gold is still expected to decline next week as US producer price index (PPI) data shows an increase in August. This reinforces expectations of a Fed rate hike, with the market currently valuing the probability at 87%.

Despite this, gold prices are showing signs of forming a support zone around $4,300 per ounce. The resurgence of buying pressure as prices approach this zone has helped the precious metal recover quickly after a deep decline.