Gold achieves first positive weekly close as central banks buy 37 tonnes

Gold ended the week in the green after rebounding from a support range between $4,060 and $4,100 per ounce, achieving its first positive weekly close in two weeks, indicating that buyers have returned to defend lower levels.

The weekly report considers a US interest rate hike at the October meeting largely unlikely following September's move, with pressure shifting to the December meeting. This means that investors should monitor price indicators and inflation data more closely than the upcoming rate decision meeting itself.

On the official demand front, central banks added a net 37 tonnes to their global reserves, continuing their role as a key market pillar. As long as gold does not close below $4,000 per ounce, the market is expected to continue trading in a broad range between $4,000 and $4,700.

September's inflation data, scheduled for October 14, remains the most important variable in the coming week, as the reading could determine whether the recent recovery is sustainable or merely a brief lull before a new wave of volatility, which Arab traders are watching closely in the global gold market.

What do these terms mean?

Weekly Close: The closing trading price at the end of the business week, used to evaluate price direction because short sessions can give misleading signals.

Trading Range: Upper and lower boundaries between which the price moves for a period, used to plan buying at support and selling at resistance.

Central Banks: The institutions that manage monetary policy and national reserves; their gold purchases are considered an indicator of long-term official demand.