Gold price remains weak even today after sharp fall, silver prices rise

US bond yields jumped sharply on Friday after data on increased retail sales in September, fueling hopes of an early monetary policy tightening by the US Fed. Among other precious metals, silver rose 0.2% to $23.34 an ounce, while platinum was down 0.4% to $1,050.80.

Most equity markets in Asia today retreated along with US futures as rising energy prices strengthened concerns about inflation. Brent is above $85 a barrel, the highest since 2018. Data released today showed China’s economy slowed in the third quarter, as a slump in assets stemmed from an energy crisis and reduced consumer spending on growth.

Gold traders will be keeping a close eye on comments from Fed Chair Jerome Powell, who takes part in a policy panel discussion on Friday. Also this week the US Conference Board Leading Index, US current home sales, jobless claims data will be released.

The dollar index climbed up to 94.058 today, limiting gold’s gains. ETF inflows also remained weak. Holdings of SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, fell 0.3% to 980.1 tonnes from 982.72 tonnes on Thursday.

recent rally Sleep Kotak Securities said in a recent note that it has stopped before the $1800/oz level and “therefore we recommend waiting for lower levels to form fresh long positions.”

Support to gold, on the other hand, has weakened investor interest despite concerns about China and a correction in prices. “Furthermore, the weight on gold price is relative stability in equity markets despite continued challenges,” the brokerage said.

Analysts say trends in the US dollar, bond yields and equities may continue to have an impact on gold and silver and economic data, central bank comments and developments related to the energy crisis, China’s asset market and US infrastructure and debt limits. The focus will be on the discussion. (with agency input)