XAU/USD Early on Monday, gold held onto recovery gains near $4,150, staying within the range of the previous week. Despite declining oil prices, Treasury yields, and predictions on a Fed rate hike, the US dollar returns to 17-month highs. In the short term, gold's technical picture seems to be skewed downward.
At the beginning of the new week on Monday, gold once again found buyers at lower levels, attempting another run to sustainably reclaim the $4,200 mark.
Gold recovers, but it's still in the woods.
In doing so, Gold is testing offers close to the psychological threshold of $4,150, as declining oil prices allay concerns about inflation and bolster the argument for the US Federal Reserve (Fed) to maintain stable interest rates at its monetary policy meeting later this month. Expectations of a restoration of the oil supply drove the recent decline in oil prices, especially after G7 nations agreed on Friday to release 100 million barrels of crude and diesel from emergency reserves and promised not to impose restrictions on energy exports in response to pressure from US President Donald Trump. Shipping reports from Monday indicated that crude oil exports from the Middle East exceeded pre-war amounts on four out of the seven days during the last week of September. This happened even though there were attacks on ships going through the Strait of Hormuz. Reports of more oil now in the market than previously feared countered news of Yemen's Iran-backed Houthis attacks on Saudi Aramco sites in Riyadh and the Khurais area over the weekend and OPEC+ maintaining its November output targets.
