Gold Under Pressure Again, Looming Threat of US Interest Rate Hikes

Global gold prices weakened once more during Friday’s trading session (October 30) as market concerns grew regarding the potential for tighter US interest rate policies. This decline was triggered by US Personal Consumption Expenditures (PCE) inflation data, which rose by 0.5% in September—reinforcing expectations that the Federal Reserve might raise interest rates in December. Such a scenario diminishes the appeal of gold, as the precious metal does not yield interest.

Pressure on gold is further compounded by inflation concerns fueled by high energy prices amidst geopolitical tensions in the Middle East. Although conflicts typically drive demand for safe-haven assets, the market is currently more focused on the risk of rising inflation, which could lead to a prolonged period of tight monetary policy.

Gold price at the time of this analysis: $4,003

- Buy if the price moves to $4,008

- Sell if the price moves to $3,998

Resistance 2: $4,022

Resistance 1: $4,015

Support 1: $3,991

Support 2: $3,984

Note: This article is analytical in nature and does not constitute definitive advice. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.