Gold Holds Near 4,360 Dollars as Oil Slides
Gold prices stabilized near 4,360 dollars per ounce after a two percent gain. Falling oil costs and lower bond yields provided immediate support for the metal.
Gold traded at 4,360 dollars per ounce on Friday. The metal gained almost 2% in the previous session. This stability followed a period of volatility driven by macroeconomic shifts.
Crude oil prices fell for the third consecutive day. Saudi Arabia is working to restore supplies via the East-West pipeline. This drop in energy costs helped ease inflation fears in the market.
Bond Yields Retreat From Highs
The yield on the 10-year US Treasury note fell to 4.93%. It had briefly crossed above 5% earlier this week. Lower yields reduce the opportunity cost of holding non-yielding assets like gold.
Investors are assessing the Federal Reserve policy outlook. The Fed raised rates for the first time in three years. Officials signaled that further tightening may be necessary to control inflation.
Rate Hike Probability Remains High
Market estimates put the chance of another rate increase in October at 53%. This remains a significant risk factor for gold prices. However, lower oil prices and falling Treasury yields offer temporary support.
Technical Signals Point Downward
Technical analysis on the four-hour chart shows a consolidation range around 4,304 dollars. A recent rebound towards 4,381 dollars has completed. A new downward move is developing towards 4,333 dollars.
A break below 4,333 dollars could extend the decline towards 4,215 dollars. The MACD indicator supports this short-term downward momentum. The signal line remains below zero and points downward.
According to GN auto markets/commodities: gold prices data, the Stochastic oscillator is poised to turn lower. The main scenario envisages a decline to the 4,215 dollar level. The recent rally appears to have exhausted its corrective potential.
