Heraeus has issued a fresh warning that gold is heading toward the $4,000 mark.
The German precious-metals group notes gold closed last week at $4,127 an ounce, down 3.82%, after breaking below the roughly $4,250 support zone; the metal now trades between $4,100 and $4,200, with $4,000 — near the year’s low — the next major support. Its weekly high was $4,226 on October 2 and its low $4,111 on September 28.
The headwinds are formidable: the 30-year US Treasury yield topped 5.3% (its highest since 2002) and the 10-year real yield pushed above 2.9%, while a firm dollar and Brent crude around $100 a barrel add pressure. Softer data — August PCE at 3.4% headline and 3% core, September payrolls of just 29,000 — has trimmed rate expectations, with October 28 hike odds down to about 17% from over 70% a week earlier.
The warning comes from Heraeus’s Precious Metals Rating report of October 5.
