Gold stabilized on Thursday, after posting significant losses in the previous session of 1.6%, trading below the key level $4,300. The yellow metal is currently looking to stabilize above the first support level of $4,275; if it fails to do so, it may face further downward pressure and target the next support level at $4,245. On the upside, if the price rises above the downtrend line, it is likely to test resistance levels near $4,362 then $4,395.
Gold prices stabilized on Thursday as expectations that the US Federal Reserve could tighten policy further in the coming period.
Market Watch
Oil slips as Iran says it is open to diplomacy to end the war
Oil prices slipped on Thursday after climbing 4% in the previous session as diplomatic talks between the United States and Iran showed no concrete sign of progress.
Iran and the US remain divided over how to bring an end to their war, but diplomacy must continue, a senior Iranian official told Reuters on Wednesday, after Iran’s president told the UN General Assembly that Tehran would never surrender to US pressure.
US business activity at more than five-year high
US business activity raced to a more than five-year high in September, fueled by a surge in new orders, though strong demand strained supply chains and pushed prices higher.
S&P Global said on Wednesday its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 58.4 this month. That was the highest level since July 2021 and followed a reading of 56.0 in August.
Dollar hovers near two-month high
The US dollar hold near its highest level in two months on Thursday as investors’ expectations of a near-term Federal Reserve rate hike grew, while oil prices jumped after Iran cast doubt on progress in peace talks.
Since the central bank’s rate hike of 25 basis points last week to the 3.75%-4.00% range, several Federal Reserve officials have flagged the possibility of more rate increases if inflation does not cool.
Looking Ahead
Markets are awaiting U.S. Jobless Claims at 12:30 GMT, which could influence gold price.