Gold spot prices reached 4,195.89 USD per ounce on Friday morning, rising 62 USD or 1.51% above Thursday’s close following a weekly low of 4,082.90 USD, as reported by Investing.com. The upward movement is driven by falling Treasury yields and a weaker US dollar, reversing earlier weekly losses.
The Bottom Line
- Gold spot prices added roughly 55 USD over the week, recovering from a trough of 4,082.90 USD to trade near the 4,200 USD psychological resistance line.
- The US Dollar Index slipped to 101.753 points, down roughly 0.3% from the previous day, lowering the cost of bullion for foreign currency holders.
Treasury Auction Relief and Yield Compression
Market pressure eased following a 30-year Treasury auction where the US Treasury sold 22 billion USD in bonds at a yield of 5.618%, the highest level since August 2000. Despite yields rising 31 points over the September auction, demand proved robust with a bid-to-cover ratio of 2.54, according to Investing.com data. Indirect buyers absorbed 72.3% of the offering, while primary dealers were left with 6.8%. The strong reception helped push the 10-year Treasury yield down by roughly 11 basis points to 5.219%, retreating from Wednesday’s peak of 5.365%.
Michel Salibi, senior analyst of financial markets at FxPro, noted in commentary covered by CNBC Arabia that rising US yields and a strengthening dollar had previously exerted downward pressure on gold throughout September, as higher yields increase the opportunity cost of holding non-yielding bullion.
Geopolitical Shifts and Energy Market Realignment
Crude oil retreated from session highs after remarks from Donald Trump indicated that the United States would not launch military actions against Iran prior to the November 3 elections, pointing instead to ongoing discussions. According to Trading Economics reports cited by Investing.com, the dip in oil prices helped alleviate inflation pressures on the Federal Reserve, providing indirect support for precious metals even as maritime security tensions persisted in the Strait of Hormuz.
Tony Sage, chief executive officer of Critical Metals, told Al Arabiya that any potential monetary policy tightening going forward could leave the gold market vulnerable. Investors remain focused on upcoming economic data releases to gauge the trajectory of interest rates ahead of the central bank’s policy gathering.
| Precious Metal | Spot Price (USD) | Daily Change (%) |
|---|---|---|
| Gold (XAU/USD) | 4,195.89 | +1.51% |
| Silver | 60.22 | +1.5% |
| Platinum | 1,677.80 | +2.7% |
| Palladium | 1,159.70 | +3.3% |
Institutional Accumulation and Central Bank Demand
Official sector buying continues to underpin market valuations. Global central banks recorded net purchases of gold as the People’s Bank of China continued buying in September.
At the same time, Mubasher reported comments from Chris Weston, head of research at Pepperstone, noting that short-term upside momentum requires a decisive break above the 4,275 USD threshold to shift institutional sentiment into a firmly bullish structure. Concurrently, Kristalina Georgieva, Managing Director of the International Monetary Fund, warned of persistent global risks tied to elevated energy costs, record public debt levels, and financial market volatility.
Technical Resistance and Market Outlook
Technical indicators compiled via WarrenAI show XAU/USD trading near resistance at 4,200 USD. Immediate resistance stands at the 4,200 USD mark, followed by previous highs near 4,227.70 USD.
On the downside, structural support rests between 4,150.52 USD and 4,148.33 USD. Analysts note that a controlled pullback toward these support levels would offer more favorable risk-reward entry points for buyers.
