Gold trades near $4,363, giving back gains from an oil-driven relief rally as the dollar index holds above 100 for a third straight session. Chinese gold imports have hit ten-year highs and Indonesia is weighing a move to become a regional gold hub, pointing to demand shifting toward Asia even as Western markets watch rates.
Gold fell about $21 to trade near $4,363, adding to a slide that had already taken it to a Monday close of $4,383.90, down $41. The metal now sits in the middle of a range between $4,300 and $4,440.
Dollar strength offsets oil's retreat
Investing.com's Commodities Analysis desk tied the move to the dollar index. The index held above 100 for a third straight close, confirming a broader comeback for the greenback, the analysis said. Oil, separately, is down 14% over five sessions.
President Trump told the UN General Assembly he faces a major decision on Iran, while Secretary of State Marco Rubio said Tehran is nearing collapse and would seek to end the war after the November 3 election. Even so, gold has given back most of the $30 it gained when the oil-relief trade first hit, a divergence the analysis called a bearish signal for the metal's near-term path.
Asian demand offsets Western skepticism
While Wall Street focuses on rate expectations, Chinese gold imports over the past 12 months have hit ten-year highs, the analysis said. Indonesia, a G20 member, could be ready to follow Singapore in establishing itself as a regional gold storage and trading center, according to the same analysis.
Technical picture stays choppy
On the daily chart, gold's stochastics indicator flashed a buy signal as prices rose from support near $4,200, the analysis said. Separately, the CAPE/Shiller ratio puts the S&P 500 at its second-most overvalued level on record, a backdrop the analysis linked to renewed interest in gold as an alternative holding.
Investing.com's analysis concluded gold is being priced on the dollar and the two-year Treasury yield, not oil, and neither has moved.
Sources: Commodities Analysis & Opinion, Commodities Analysis & Opinion
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