Gold Sees Modest Increase in October Debut

By Barani Krishnan

As October trading begins, gold shows signs that its recent turmoil may be behind it — at least for the moment — with modest gains observed alongside other risk assets recovering from a difficult September.

A decline in both the dollar and Treasury yields also contributed to gold’s ability to secure a second consecutive week of gains, albeit minor.

On the New York Comex, the most actively traded U.S. gold futures contract closed on Friday at $1,758.40 per ounce, an increase of $1.40, or 0.1%. Despite a rough Thursday where it faced a 2% drop, gold still managed to finish the week with a 0.4% gain, although it recorded a significant loss of 3.4% for September.

Craig Erlam, an analyst at a trading platform, remarked, "We may be seeing gold benefit from safe-haven investments as uncertainty grows." He added, "It will be interesting to see if it can sustain these gains if risk aversion persists in the upcoming weeks. There are several hurdles to overcome, with the first resistance level at $1,760, which it encountered recently, followed by $1,780."