Gold Makes Longest Losing Streak in 3 Decades

AI desk brief

Gold has now posted a 7-week losing streak in London, down $5/oz from last Friday’s 3pm fix to around $4,185, even after a sharp retreat in bond yields and a weaker dollar. Silver also fell for a 4th straight week, fixing near $57.75/oz, its lowest week-end benchmark since mid-July.

BullionVault cites Oxford Economics saying higher oil prices have reinforced inflation concerns, tighter Fed expectations, and support for yields and the dollar, limiting gold’s reaction to the Middle East shock. Offset to that, central-bank gold demand hit 63t net in September, the heaviest monthly buying in two years, and gold-backed ETFs have continued to expand despite the price decline. Oxford Economics still sees average gold at $4,515/oz this year and above $5,000 the following year.