Weekly Gold Review: COMEX Futures Hit Three Week High, WGC Says US Dollar To Be Key Driver For Metal

8 Oct 2022 , 01:25 PM

Gold hit near three week high of $1740 per ounce. The World Gold Council or the WGC has stated in a latest update that the US dollar will be a key driver of gold prices over the next few months and sees risks to dollar strength primarily from valuation, positioning and further central bank intervention – which would be gold supportive. In addition, it appears that gold investors now view policy rate rises as less of a threat to gold than before. They appear to have accepted Fed hawkishness and its terminal rate forecast. In addition, their sensitivity to Federal Market Open Committee (FOMC) announcements has fallen and the growing yield curve inversion and forward rate expectations signal a consensus expectation for lower rates ahead. Gold fell for the sixth consecutive month, dropping 2.6% to finish September at US$1,671.8/oz.Powered by Commodity Insights