The metal was also down 5.89 percent on the month and 2.66 percent on the year.
Warsh nomination and Iran tension cited
Ibrahim Assuaibi, an economic, currency and commodity observer, linked the weakness to Kevin Warsh’s nomination as a US central bank official, alongside the US-Iran conflict’s effect on energy supply and higher oil prices.
“Gold is a safe haven asset; a short-term decline is normal,” Ibrahim said. Trading Economics forecast gold would reach $3,815.16 per troy ounce in the fourth quarter, a further decline from current levels.
Conditions for a rebound
Ibrahim said gold could rebound if the US-Iran conflict ends, if crude oil falls below $60 a barrel, and if the Federal Reserve begins cutting interest rates.
By MacroHerald’s own measurement, gold stood at $3,910.62 an ounce as of 02:22 GMT on 2 November, near its 31-day low. CFTC data for the week to 27 October showed speculators holding a net long gold position of 186,451 contracts, down from 199,865 contracts a week earlier.
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Related: Silver breaks below $50 as gold slips under $4,000 · Oil slips $1 a barrel as US-Iran talk hopes ease supply fears
Source: Federal Reserve · Trading Economics | Data: Swissquote · CFTC
