4 hrs ago
Gold Recovers as Chinese Buyers Return After Weeklong Holiday
Gold prices went up a little as Chinese buyers returned from a weeklong holiday.
Before that, their absence had made trading quieter in Asian markets.
Even with this small rise, gold was still on course to fall for a third week in a row.
Higher energy prices have raised worries about inflation and interest rates, which can make gold less attractive.
Gold has lost about one-fifth of its value since the US-Iran war began in late February.
Central banks buying gold have helped support its price.
China’s central bank bought about 23 tons in September, its biggest monthly purchase since 2023.
Traders are also watching for clues about the US Federal Reserve’s next interest-rate decision.
Gold rose 0.3% to $4,122.28 an ounce in London trading after reaching a two-month low.
Chinese buyers returned after a weeklong holiday that had muted activity in Asian markets.
Gold remained on track for a third consecutive weekly loss after falling 1.3% Wednesday.
Since the US-Iran war began in late February, gold has fallen about 20%, as higher energy costs fuel inflation and rate-hike concerns.
Central-bank buying has offered support; China added about 23 tons of gold in September, its largest monthly purchase since 2023.
- Who
- Chinese gold buyers, central banks, and traders assessing interest rates and energy prices.
- What
- Gold recovered from a two-month low, though prices remained on track for a third weekly loss.
- Where
- Gold traded near $4,120 an ounce; the reported spot price was recorded in London.
- When
- During London trading at 10:54 a.m.; the article gives no calendar date.
- Why
- Chinese buyers returned after a weeklong holiday, while traders weighed energy prices, inflation, and the outlook for interest rates.
Key facts
- Spot gold
- Up 0.3% to $4,122.28 an ounce at 10:54 a.m. in London.
- Recent low
- Gold had reached a two-month low.
- Weekly direction
- Prices were on track for a third weekly loss.
- War-related decline
- Gold had fallen about 20% since the US-Iran war erupted in late February.
- China’s gold purchases
- The People’s Bank of China added about 23 tons in September, its biggest monthly buying since 2023.
- Rate expectations
- Traders priced in about a 20% chance of a rate hike in October and about an 80% chance in December.
- Other metals
- Silver fell 1.4% to $58.94; platinum and palladium advanced.
Sources
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