Gold Price Rallies as 8-Week Trading Low Blamed on China, Rates, Trump - bullionvault.com

AI desk brief

Gold and silver rebounded from 8-week lows in London as surging bond yields and oil paused, while Shanghai gold priced more than $26/oz above London amid a 3-month high premium ahead of China’s Golden Week. Shanghai gold slipped below ¥900/g for the first time since 5 August, but the stronger yuan and a sharp rise in Chinese physical incentive pointed to import demand well above normal; Shanghai gold futures open interest fell 7.4% since last Thursday while options OI rose 14.0%.

The macro backdrop remains rate-sensitive: traders now see a 70% chance of another Fed hike in October and 58% for December, with the market pricing Fed Funds at 4.85% by September 2027. Analysts at Natixis and MKS Pamo said gold is again correlating with the 10-year Treasury yield, but remains in a buy-zone if rates and the USD have overextended; geopolitical tension after Trump rejected Iran’s Hormuz deal proposal also supported safe-haven demand.