Gold Holds Above Key Support as Yields Ease and Middle East Tensions Cool

Deep News
Yesterday

On Thursday (October 8), international gold prices closed higher after a choppy session, refusing to extend losses further and continuing to consolidate above the ascending trendline support.

The weekly US initial jobless claims for the week ended October 3 and the August wholesale sales monthly rate both weighed on bullion, but media reports that President Trump repeatedly rejected active US military preparations for a Middle East force plan, along with Trump's remarks that Washington and Tehran are holding productive discussions and that no attack on Iran will occur before the midterm elections, plus a clear softening in US Treasury yields, combined to push prices higher.

This also suggests the market bias remains one of bottoming out and waiting for a rebound.

In terms of price action, gold opened higher in Asian trading at $4,114.72 per ounce, first touched an intraday low of $4,103.23, then rebounded and spent most of the session range-bound, hitting an intraday high of $4,145.81 late in the US session before settling at $4,133.43.

The daily range was $42.58, and against Wednesday's close of $4,110.65 the metal gained $22.78, or 0.55%.

Looking ahead to Friday (October 9), international gold opened extending the late-session recovery from the prior day and initially traded firmer, as Trump's comments and Iranian Foreign Minister Araghchi's statement that negotiations are continuing and a response to the US proposal will come in the next few days eased inflation pressure and supported bullion.

Combined with weakening momentum in the dollar index and Treasury yields, which show signs of topping out and turning lower in the near term, this should lend support to gold.

As a result, the near-term bias is mainly for a bottoming and consolidation phase ahead of a rebound.

During the day, investors will watch the preliminary October one-year inflation expectation and the preliminary October University of Michigan consumer sentiment index.

Market expectations lean toward being supportive for gold; even if the data turns out negative for bullion as Thursday's did, range-bound trading is likely.

Intraday action is therefore expected to be choppy or biased toward a rebound, with a buy-the-dip strategy preferred.

Technically, on the weekly chart, gold is trading in a range near the support above the ascending trend channel that began in 2024.

Based on historical patterns, the metal is expected to keep consolidating above this support, but bearish pressure has not yet faded.

Short-term bulls could look to buy near this support around $4,060 and target resistance at $4,300 or $4,400, while medium- to long-term bulls could look to the $3,900–$3,700 zone within the channel support for a fresh push to new highs.

On the daily chart, gold closed higher on Thursday and held above the ascending trendline, while bearish signals from secondary indicators continued to weaken, suggesting the near-term bias is toward bottoming and consolidation or a rebound.

In the short term, buying on dips is preferred, with the 200-day or 60-day moving average as upside targets.

Below are preliminary intraday support and resistance levels for reference; actual entry and exit points are subject to real-time notification:

Gold: downside support near $4,125 or $4,110; upside resistance near $4,160 or $4,190.

Silver: downside support near $59.00 or $58.50; upside resistance near $60.15 or $61.00.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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