Gold Finds Its Footing Above $4,140 After Brutal September Slide

After dropping roughly 8% in September, global gold prices are trying to stabilize, trading in a band between the low‑ and high‑$4,100s per ounce on October 1. Market commentary from Australian bullion dealers notes that prices spiked briefly after an upside revision to US GDP, but persistent dollar strength and high interest rates quickly tempted sellers back in, capping the rebound.

In Asia, particularly India, physical demand from jewellery buyers and long‑term investors is slowly returning after the correction. Analysts point out that holdings in gold‑backed ETFs have risen for five consecutive sessions, a sign that longer‑horizon investors are starting to “buy the dip” despite near‑term volatility.

A softer‑than‑expected US inflation print has trimmed expectations for another Federal Reserve rate hike in October, but real yields remain elevated, which still poses a headwind for non‑yielding assets like gold. Going forward, traders will be watching US labor data and geopolitical tensions in the Middle East to gauge whether safe‑haven demand can offset the drag from high real rates.