Gold Outlook: US inflation metrics due out this week

Since our last report Gold’s price, appears to be moving in a downwards trajectory. In today’s report we are to discuss mainly fundamental issues and we intend to end the report with a technical analysis of Gold’s daily chart.          

US inflation metrics due out this week

The US inflation data is due to be released this Wednesday. The headline and Core CPI rates for the month of September on a year-on-year basis are both expected to accelerate respectively. In particular, economists are currently anticipating the headline rate to come in at 3.6% and the Core rate at 2.5%. Thus, should the rates come in as expected or higher, which would imply an acceleration of inflationary pressures on the US economy, the pressure on the Fed to maintain a restrictive monetary policy stance could increase, which may aid the greenback whilst weighing on the precious metal’s price given the two instruments’ inverse relationship with one another.

Houthi Rebel’s strike Saudi Arabian airports over the weekend

Houthi Rebel’s have struck airports located in Saudi Arabia over this past weekend. In particular, the strike on Saturday resulted in 12 casualties and Saudi Arabia reported earlier on today that they intercepted a ballistic missile from the Houthi Rebels. The strikes by the Houthi Rebels have disrupted Saudi Arabia’s airports with numerous cancellations occurring, in turn tensions in the region could escalate. Moreover, the continued strikes on the Kingdom could raise the possibility of retaliatory strikes which may further lead to elevated tensions in the region, which could provide some support for gold’s price given its safe haven asset status.+

Gold demand for Q3 remains elevated – WGC

According to a report released by the WGC, Global gold ETFs attracted US$10bn in September, lifting Q3 inflows to a record US$31bn, led by European- and North American-listed funds. Moreover, the UK recorded its strongest quarter on record, helping Europe achieve the same milestone on a regional level. Overall, the report by the WGC tends to showcase that gold demand has remained strong, to the extent that, per their data Q3 of 2026 was the largest quarterly inflow on record. In turn, the data supporting strong gold demand could have provided some support for the precious metal’s price should such trends continue.

Teknikal na Pagsusuri

XAU/USD Daily Chart

Gold’s price appears to be moving in a downwards fashion despite currently testing our 4180 (R1) resistance level. We opt for a bearish outlook for the precious metal’s price and supporting our case is the RSI indicator below our chart, which currently registers a figure close to 40, implying a bearish market sentiment. For our bearish outlook to continue, we would require a break below our 4020 (S1) support level, with the next possible target for the bears being our 3815 (S2) support base. On the other hand, for a sideways bias we would require gold’s price to remain confined between our 4020 (S1) support level and our 4180 (R1) resistance line. Lastly, for a bullish outlook, we would require a clear break above our 4180 (R1) resistance level, with the next possible target for the bulls being our 4335 (R2) resistance line.

DISCLAIMER: This information is not considered as investment advice or an investment recommendation, but is instead a marketing communication.