Now Reading: Gold nearing interim bottom, World Gold Council says
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Gold nearing interim bottom, World Gold Council says
The Story in Brief
The World Gold Council (WGC) has said gold prices may be approaching an interim bottom, with two of three historical conditions for a price recovery already in place. Gold closed October at $3,913 per ounce, down 6.3% for the month and about 25% below the record high of $5,405/oz reached in January 2026.
The WGC report said gold is trading well below its 200-day average and the dollar has rallied into its top tier, but speculative positioning remains elevated and has not undergone a complete washout. The council cautioned that a further reduction in speculative futures positions would be necessary before a more durable recovery could take hold.
The council said the current macro backdrop, with real yields in restrictive territory, an expensive US dollar and elevated geopolitical risks, makes the post-2011 multi-year decline a poor comparison. It added that further weakness in equity and credit markets, as well as policy decisions around the US midterm elections, could influence gold prices through the end of 2026.
Indian Opinion Analysis
The WGC is signalling that gold's current correction is different from the prolonged bear market after 2011, citing restrictive real yields and high geopolitical risk as supports for a recovery. The missing condition, a washout in speculative positioning, means the price could still test the $3,857 support level. For investors, the council frames the weakness as a potential entry point for gradual accumulation rather than a call to time the exact bottom.
Source: livemint.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
