Gold prices recover after two weeks of declines, Fed remains an unknown quantity. - Vietnam.vn

AI desk brief

Gold bounced after two straight weekly declines, with spot/futures recovering from about $4,117/oz on Oct. 7 to $4,194.4/oz by week-end, though still well below the $4,400-$4,500/oz area seen in early September. The move remains capped by expectations that the Fed will keep rates restrictive: CME FedWatch still implies no change at the Oct. 27-28 meeting, but roughly an 85% chance of another hike in December, with Fed officials keeping the hawkish option open.

Positioning is mixed. COMEX net longs were cut to 120,318 contracts as of Sept. 29, down about 24,429 from end-August, while gold ETFs continued to add 63.4t in the four weeks to Sept. 25, lifting holdings to about 4,248.4t. The report flags technical support at $4,123/oz and resistance at $4,488/oz on COMEX Dec gold.