DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Gold finished a volatile week higher after early pressure from rising Treasury yields, a firmer U.S. dollar, and renewed inflation concerns gave way to a strong rebound. Spot gold last traded at $4,194.64 per ounce, gaining 1.28% for the week and 1.47% for the day.

The metal opened Sunday evening at $4,142.40 per ounce and initially advanced as traders weighed the inflationary impact of the conflict involving the U.S. and Iran, elevated oil prices, and another round of central bank gold buying from China.

That rally stalled Tuesday as the dollar and Treasury yields strengthened. Pressure intensified after minutes from the September Federal Reserve meeting showed that most policymakers still expected another interest rate increase would be needed before year end.

Selling accelerated Wednesday as expectations for higher rates and a stronger dollar weighed on non yielding assets. Spot gold touched its weekly low of $4,066.31 per ounce before buyers returned near the bottom of the recent trading range.

Gold recovered Thursday after a strong 30 year Treasury auction helped yields retreat from their morning highs. Oil remained elevated, however, keeping inflation risks and expectations for possible Federal Reserve tightening in December firmly in the market.

Friday produced the week’s strongest move as the dollar weakened, Treasury yields eased, and oil prices retreated. Reports of productive talks between the U.S. and Iran also helped reduce pressure on gold prices.

The rebound gained momentum after preliminary University of Michigan consumer sentiment dropped to 46.3 while inflation expectations increased. Gold climbed as high as $4,207.48 early Friday before easing to roughly $5 below the important $4,200 resistance level.

The Kitco News Weekly Gold Survey showed Wall Street moving back to the edge of a bullish majority. Among 14 participating analysts, seven, or 50%, expected higher prices, while two, or 14%, forecast a decline and five, or 36%, anticipated sideways trading or could not predict direction.

Main Street remained less optimistic despite gold’s resilience. Of 206 online poll respondents, 93, or 45%, expected gold to rise, while 77, or 37%, predicted lower prices and 36, or 18%, expected sideways movement.

Darin Newsom, senior market analyst at Barchart.com, maintained a bullish outlook, citing an oversold December gold contract and room to advance toward its 45 day moving average near $4,398. Adrian Day, president of Adrian Day Asset Management, instead expected continued back and forth trading without a major decline or breakout.

James Stanley, senior market strategist at Forex.com, said the week may have delivered capitulation because sellers quickly retreated after the decline. He also pointed to continued buying near the $4,000 level and viewed a positive weekly close as notable.

Rich Checkan, president and COO of Asset Strategies International, expected gold to rise as the market increasingly believed the Federal Reserve would avoid an interest rate increase at the October FOMC meeting. He said Treasury yields and dollar strength would limit appreciation.

Kevin Grady, president of Phoenix Futures and Options, focused on the coming CPI report and its implications for Federal Reserve policy. He expected gold to remain within its recent range but warned that automated trading could generate enormous volatility as algorithms react to every word in incoming reports.

Grady expected inflation data to exceed forecasts, partly because of energy prices, but argued that one report would not settle whether inflation pressures were temporary or persistent. He also said gold had lost support from the debasement trade and was now looking to other markets for direction.

Marc Chandler, managing director at Bannockburn Global Forex, expected pressure on gold and said the metal must regain a foothold above $4,230 to suggest that a base has formed. Colin Cieszynski, chief market strategist at SIA Wealth Management, remained neutral and described gold as range bound.

Alex Kuptsikevich, senior market analyst at FxPro, saw the nearly 3% rise during the second half of the week as a possible turning point. He said gold had room to advance, with no technical barriers until the $4,300 to $4,350 range, though significant longer term challenges remained.

Michael Moor, founder of Moor Analytics, also expected further gains unless gold failed below a technical formation he identified. Traders next week will watch September CPI and PPI, retail sales, existing home sales, jobless claims, regional manufacturing surveys, and comments from Federal Reserve Chair Kevin Warsh.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.