Gold rebounds after two-month lows! What is the current gold price?

Gold prices rebound again after falling to two-month lows

Gold prices have rebounded recently after hitting their lowest level in two months. As of 09:32 on October 8, the domestic gold price (per gram) was 6,514.26 Turkish lira, and the international gold price (per ounce) was reported at 4,116.71 U.S. dollars. In global markets, the US dollar index fell from an 18-month high, providing support for gold prices. However, the rise in gold prices still faces significant resistance. U.S. Treasury yields remain high and the market is widely expected that the Federal Reserve may raise interest rates again before the end of the year.

Price of gram gold and quarter gold coins on October 8

The following are some gold reference prices in the Turkish market on October 8:

In early trading, the price of gram gold rose by about 0.19%, while the price of Republic gold coins rose similar, also at 0.19%. The increase in jewelry gold and half gold coin was about 0.22%. The entire gold coin performed relatively strongly, with an increase of 0.32%.

Why did gold prices rebound again?

The primary driving factor for the rebound in gold prices this time is the change in the trend of the US dollar. According to Reuters, international gold prices rose about 0.7% on Thursday after hitting a two-month low on Wednesday. The U.S. dollar index has retreated from an 18-month high, making gold more attractive to foreign investors. The previous sell-off was mainly affected by the strong dollar and high U.S. Treasury yields. Since gold itself does not generate interest yields, rising bond interest rates have weakened gold's investment appeal.

This oppressive force has not yet been completely eliminated. The U.S. 10-year Treasury yield rose to 5.36% on Wednesday before falling slightly due to strong bond auctions, but remains high at around 5.3%.

How will the Fed's decision affect gold prices?

The minutes of the September meeting of the Federal Reserve also brought new risks to gold. The minutes showed that most Fed officials believed it might be appropriate to raise interest rates again before the end of the year. Current market pricing shows that the probability of raising interest rates in October is about 18%, while the probability of raising interest rates at least once in December is about 80%.

These expectations constitute one of the biggest obstacles facing gold prices in the short term. The high interest rate environment makes gold, an interest-free asset, less attractive to investors.

In the next few days, the market will focus on data such as weekly initial jobless claims and consumer confidence index. The main macro test will be the US CPI (Consumer Price Index) data released on October 14. The next Fed interest-rate meeting will be held from October 27 to 28.

What technical points should we focus on?

Whether the international gold price can achieve a sustained rebound will depend on the performance of key technical levels. According to Kitco's analysis, the first significant resistance area lies between $4,118 and $4,151. If you break through this area, the next target may look at $4,199 and $4,230.

Therefore, early gold price fluctuations cannot alone indicate the establishment of a new upward trend. Prices first need to recover their previous losses.

In the domestic market, the price of gram gold is affected by both fluctuations in the international gold price and the exchange rate of the U.S. dollar against the lira. Therefore, even if the international gold price stabilizes, changes in the exchange rate will independently affect the direction of the gold price.

Currently, gold prices are trying to maintain their momentum of rebound from two-month lows. Although the fall of the dollar has supported prices, high bond yields and the possibility of the Federal Reserve raising interest rates at the end of the year still pose pressure. Therefore, the market's attention first focuses on whether the international gold price can break through the resistance zone, and secondly focuses on the U.S. inflation data on October 14.

This content is based on general market data and does not constitute investment advice. Readers are advised to conduct independent research.