Gold Slips Below Key Support as Markets Await U.S. Inflation Data and Fed Guidance
Gold | 2026-10-14 06:01:36
Meanwhile, European and US investors continued allocating funds to gold ETFs despite recent price weakness.
By Paul Ploumis
SEATTLE (Scrap Monster): Gold prices edged lower last week as escalating geopolitical tensions, uncertain US monetary policy and concerns over mounting government debt weighed on investor sentiment, according to the World Gold Council’s Weekly Markets Monitor.
The LBMA Gold Price PM declined 0.1% week-on-week to close at US$4,186 per ounce on Friday, extending its year-to-date loss to 4.2%. Lower bond yields provided some support, but slowing gold exchange-traded fund (ETF) inflows limited the recovery.
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Global equities advanced during the week, while bond yields eased slightly. Oil prices stayed firm amid tensions involving the US, Iran and the wider Middle East, while the US dollar strengthened marginally. The above factors continued to keep inflation risks and the Federal Reserve’s policy outlook in focus.
According to the WGC report, global gold ETF inflows slowed. Net long positions in COMEX gold futures declined, while Chinese investors increased their bullish exposure in the yellow metal. Fiscal concerns also supported gold’s investment appeal. Meanwhile, European and US investors continued allocating funds to gold ETFs despite recent price weakness.
Markets are now awaiting US inflation and economic activity indicators. The uncertainty surrounding US-Russia energy arrangements and continuing Middle East tensions could remain important drivers of gold prices in the coming week.
POLL
Which investment-market development limited gold's recovery during the reported week?
Frequently Asked Questions
- What was the closing gold price during the reported week?
The LBMA Gold Price PM closed at $4,186 per ounce on Friday, marking a 0.1% decline from the previous week. Gold's year-to-date loss consequently stood at 4.2%, according to the World Gold Council's Weekly Markets Monitor.
- What factors contributed to the decline in gold prices?
Escalating geopolitical tensions, uncertainty surrounding US monetary policy and concerns about rising government debt influenced market sentiment. Slowing global gold ETF inflows and declining net long positions in COMEX futures also limited upward momentum, although lower bond yields provided some support.
- Which factors could influence gold prices in the coming week?
Upcoming US inflation and economic activity indicators could shape expectations for Federal Reserve policy. Developments in the Middle East, uncertainty over US-Russia energy arrangements, movements in bond yields and the US dollar, and concerns about government debt are also potential market drivers.