Gold price outlook: World Gold Council sees signs of an interim bottom - BusinessLine

AI desk brief

Gold closed October at $3,913/oz, down 6.3%; the WGC sees a possible interim bottom, with technical weakness and dollar strength meeting two historical recovery conditions. Comparable observations since 2005 delivered a median three-month gain of 4.2%, with 90% positive returns, but the sample is limited and elevated speculative positioning still requires a washout for a durable recovery. Gold trades around 10% below its 200-day average and could test $3,857 support. The WGC favours a correction over a prolonged downturn, while warning that equity and credit weakness could favour Treasuries; inflation and policy developments remain important conditions.