The Federal Reserve announced that the New York Federal Reserve Bank will not conduct any Treasury bond purchases in the month ending October 14th. Data shows this will be the second consecutive month the Fed has suspended Treasury bond purchases. This indicates that the overall US banking sector has ample reserves, and there are no issues with financing or liquidity. This financial environment will, to some extent, provide the Fed with an important tool to raise interest rates and suppress inflation. Therefore, expectations of upward interest rates will continue to expand in the short term, suppressing risk appetite for gold.

Gold prices may fluctuate between $4,242 and $4,331 in the short term. Pay close attention to potential entry opportunities at the higher end of this range. There is room for short-term pullbacks; $4,351 can be considered an important defensive level. Be sure to manage risk accordingly.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for market observation and do not constitute investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com