Quote on gold's price outlook for the month of October by Dhruv Joglekar, Assistant Fund Manager at Monarch PMS
Below the Quote on gold's price outlook for the month of October by Dhruv Joglekar, Assistant Fund Manager at Monarch PMS
As we enter October and step into the vibrant festive season, gold has opened on a steady note near $4,150 an ounce after underperforming with a nearly 6% drop in September. This retreat was driven by multi-decade highs in long-dated US Treasury yields and robust US consumer spending, which raised the opportunity cost of holding non-yielding bullion amid global rate tightening and fiscal deficit concerns.
However, a softer-than-expected August core PCE inflation reading of 0.2% has trimmed the probability of an October Federal Reserve rate hike to roughly 34%, providing a modest buffer. Moving into October, we expect gold prices to find solid support as the market shifts its focus to Friday’s crucial US jobs report for near-term policy trajectory. Backed by the traditional surge in physical demand through the peak festive months of October and November along with Central bank demand, gold is well-positioned to stabilize and potentially catch a strong tailwind once clarity emerges on US inflation.
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