Gold Prices Soar to Weekly High After Fed Rate Hike
The gold market has recovered from an early selloff driven by surging oil prices and expectations of a Federal Reserve rate hike, with spot gold rising to its weekly high of $4,400.60 per ounce on Friday.
The precious metal initially dropped to a more than one-month low near $4,279.30 per ounce on Tuesday as markets treated the Fed hike as increasingly locked in. However, it recovered Thursday and extended the rally on Friday after lower crude oil prices and easing Treasury yields helped traders unwind some of the post-Fed pressure.
All 16 analysts participating in the Kitco News Gold Survey expected to see gold prices gain further ground during the week ahead, with Wall Street going full bull after a Fed rate hike couldn't slow gold's momentum. Main Street investors also bolstered their bullish majority, with 58% of retail traders predicting gold prices would rise next week.
The week ahead will be relatively quiet in terms of economic data, but markets will still receive a handful of second-tier indicators along with one more central bank rate decision. The S&P Global Flash PMI data for September and the Swiss National Bank's monetary policy decision are among the key releases to watch.