Heraeus: Next Major Gold Support at $4,000 After Losing 4,250
Heraeus states that gold lost support at around $4,250, and that the year's lows around $4,000 represent the next major support zone.
Comments by Heraeus reported by Kitco News stated that gold broke support at around $4,250 per ounce and has since traded in a range between $4,100 and $4,200.
It noted that this year's lows around $4,000 per ounce represent the next major support zone, with ongoing pressure stemming from rising bond yields.
Spot gold was last trading at $4,135.54 per ounce, down 0.12% on the day, while the 10-year US Treasury yield exceeded 5.3%, its highest level since 2002, and the real yield for the same maturity exceeded 2.9%.
The probability of a rate hike at the Fed's October 28 meeting dropped to around 17% on October 2, down from over 70% at the start of the previous week, according to the report. The Silver Institute expects Mexican mine production to return to modest growth in 2026.
What do these terms mean?
Support Level: A price level at which buyers tend to buy, temporarily halting a decline; breaking it opens the door to further losses.
Real Yield: The bond yield after deducting inflation, measuring the investor's actual return.
Rate Hike Probability: The market's estimate of the likelihood that the Fed will raise interest rates at a specific meeting, usually derived from futures trading.
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