Gold Prices Slide Below $4,300 Amid Rising Yields and Hawkish Fed Expectations
Gold prices struggled to stabilize last week as a combination of rising Treasury yields, hawkish Federal Reserve expectations, and persistent inflation concerns weighed on the market. Spot gold briefly pushed above $4,350 before sellers regained control, with prices eventually breaking below $4,300.
The metal's weekly low was set at $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 and dip-buyers stepped back into metals markets, but the rebound remained capped by elevated rate-hike expectations.
Wall Street analysts were split in their views on gold's near-term direction, with 36% expecting gains, 29% predicting further losses, and 36% anticipating a volatile sideways channel. Main Street investors maintained their bullish majority, however, with 57% of retail traders looking for gold prices to rise next week.
Next week will feature a raft of employment data, including the Reserve Bank of Australia's monetary policy decision, U.S. Consumer Confidence and JOLTS job openings, ADP Nonfarm Payrolls, and ISM Manufacturing PMI for September.