Gold Regains Gains Amid Declining Market Risks

Gold prices recovered part of their gains during last week’s trading, closing at $4,071 per ounce following a decline in market risks and a resumption of buying momentum, which helped the precious metal rebound after a previous correction wave. A report issued by Kuwait’s Dar Al Sibaak stated that gold’s performance was supported by renewed buying at lower levels, improved investment demand for precious metals, and continued uncertainty regarding global economic developments, US monetary policy, and geopolitical risks.

The report noted that last week’s trading saw notable volatility, with gold rising during Thursday’s session to levels exceeding $4,140 per ounce before retreating on Friday amid a stronger US dollar and higher Treasury yields, ending the week at $4,071. It added that despite the price decline in the final session, the recovery above the $4,000 level reflected an improvement in buying momentum compared to the previous week, with markets remaining sensitive to US economic data and interest rate expectations.

The report mentioned that markets entered the current week anticipating several key economic indicators, led by the US Consumer Price Index for October, scheduled for release on Tuesday, followed by the Producer Price Index on Friday, alongside weekly jobless claims data and statements from US Federal Reserve officials.

It highlighted that inflation data gained particular importance following the strong jobs report, as persistent price increases could reinforce expectations that interest rates would remain elevated for longer or raise the likelihood of a rate hike at the December meeting. Conversely, a clear slowdown in inflation could ease pressure on the dollar and bond yields, giving gold an opportunity to hold its gains and continue its recovery, especially after returning to trade above the $4,000 level.