Gold (XAU/USD) edged back above $4,000 on Friday after sliding to $3,986 in Asian hours, its lowest level since July, following a 2.81% drop on Thursday. It was trading near $4,029 at the time of writing and was set for a weekly fall of more than 3%. The broader backdrop stayed tense: the S&P 500 fell 1.2% to 7,663 as the Philadelphia Stock Exchange Semiconductor index sank to its weakest since July, while US Treasuries rallied with the 10-year yield moving back below 5% for the first time since September and the 2-year dipping under 4.75%.
Gold struggled to draw support from lower yields, with Middle East tensions helping keep West Texas Intermediate around $100 per barrel near five-week highs, reinforcing “higher for longer” rate expectations and the opportunity cost of holding non-yielding metal. The US Dollar Index traded around 101.70, up 0.11%, and the 10-year yield was about 4.99%. October flash S&P Global data showed the Composite PMI eased to 57.6 from 58.4, Manufacturing rose to 56.0 from 55.9 versus 55.6 expected, and Services slipped to 57.9 from 58.8. Technical signals remained bearish, with RSI near 35, MACD below zero and ADX around 24; resistance sits at $4,100 and $4,200 with the 100-day SMA at $4,224, then the 50-day SMA at $4,302 and 200-day SMA at $4,509, while support is seen at $3,950, $3,900 and $3,800.
Historical Gold Drawdowns And Rate Hikes
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Central Bank Gold Purchases, Market Volatility, And Options Skew
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