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 prices staged a powerful rebound during a turbulent week, overcoming pressure from rising oil prices, Treasury yields near 5%, and expectations for a Federal Reserve rate increase. The selling reversed sharply after policymakers delivered the anticipated hike and pressure from oil and yields eased.

Spot gold opened Sunday evening near $4,340 per ounce before inflation concerns and renewed tensions between the United States and Iran weighed on the market. Selling intensified Monday and Tuesday, pushing gold to a more than one month low near $4,279.30 per ounce.

Gold tried to stabilize Wednesday before the Federal Reserve announcement. The FOMC then voted 12 to 0 to raise rates by 25 basis points, setting a target range of 3.75% to 4.00%, while 16 of 18 policymakers projected another increase before year end.

The metal fell after the decision and reached its weekly low near $4,261.80 per ounce Wednesday afternoon. That weakness did not last, as lower crude oil prices, a softer U.S. dollar, and easing Treasury yields helped gold recover Thursday.

The rally gathered strength Friday as oil declined for a third consecutive session and yields retreated from their weekly highs. Spot gold climbed as high as $4,400.60 per ounce before easing back near $4,377 heading into the weekend.

That performance left gold positive across the five day period and ended a three week losing streak. At the time of writing, spot gold traded at $4,378.38 per ounce, gaining 0.91% for the week and 0.84% for the day.

The Kitco News Weekly Gold Survey showed a dramatic swing toward optimism on Wall Street. All 16 participating analysts, representing 100% of respondents, expected gold prices to rise further during the following week.

Adam Button, head of currency strategy at investingLive, pointed to the metal’s resilience following the central bank decision. “Gold buyers appeared after a hawkish FOMC. That was impressive.”

Darin Newsom, senior market analyst at Barchart.com, said gold’s short term trend had turned upward on its daily close only chart. He noted that December gold dipped below its 45 day moving average Tuesday without triggering algorithm selling, while other technical indicators suggested the market was closer to oversold than overbought.

Rich Checkan, president and COO of Asset Strategies International, said the interest rate increase had already been reflected in gold prices. He argued that official inflation of 3.4% offered little incentive to abandon gold when rates stood at 4%, while consumers felt inflation closer to 8%.

James Stanley, senior market strategist at Forex.com, highlighted gold’s defense of the $4,300 area and the failure of sellers to extend the breakdown after the FOMC meeting. He remained bullish unless market evidence indicated that a change in direction was warranted.

Sean Lusk, codirector of commercial hedging at Walsh Trading, said positive data and seasonal factors could support gold through October. He warned that another surge in crude oil toward $110 or $115 would be a major deterrent, while declining energy prices could help the metal.

Lusk said markets were increasingly driven by headlines and geopolitics rather than a clear economic baseline. He also pointed to physical demand and Diwali as factors that have historically supported metals during a one month stretch beginning near the end of September.

Main Street investors strengthened their bullish majority in Kitco’s online poll. Among 220 votes, 127 retail traders, or 58%, expected higher prices, while 52, or 24%, forecast a decline and 41, or 19%, anticipated sideways trading.

The coming economic calendar was expected to be relatively quiet. Markets were scheduled to receive September S&P Global Flash PMI data Wednesday, the Swiss National Bank’s policy decision and weekly jobless claims Thursday, then August Durable Goods Orders and September consumer sentiment Friday.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said gold appeared to have stabilized in a higher range after trading near $4,000 during the summer. He described the current zone near $4,300 to $4,400 as evidence that gold had probably found a near term bottom.

Alex Kuptsikevich, senior market analyst at FxPro, said the recovery from below $4,250 confirmed a bullish shift in the medium term trend. He said favorable conditions could push gold to $4,500 the following week, with the possibility of reaching the $4,700 area in the coming weeks.

CPM Group issued a Buy recommendation with an initial target of $4,590 between September 17 and October 2 and a stop loss at $4,270. Its analysts said gold’s declining trend since the August 25 peak of $4,755 appeared to be turning as prices held above support and technical conditions improved.

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.