Gold investments in Asia continue to hold close to their all-time highs. After the downtrend since April, Gold futures advanced in October, as it moved in parallel to the channel of mid-August- September ranging from the high of 1,210.84 to the low of 1,182.79.

GOLD

A sudden change in the direction of the precious metals accompanied the sudden death of Khashoggi, which created a 1-day boost in October with an opening of 1,194.05 and a closing at 1,222.58, with demand on gold increasing as a safe haven instrument.

The month then followed this boost with an uptrend leading the metal to a bullish market and settling it from its jammed movement in the low channel for almost a month and a half. With this change in direction, gold future expected to continue their advancement in the bullish market especially after the high-top shadows of the candlesticks that appear strong accompanied with the fierce fight between bears and bulls, where bulls seem to be winning.

The USD dropped down as the US inflation rate increased driving the gold upwards, with bulls creating buying pressure over the bears.

If speculations arise that certain central banks or governments are stockpiling gold to combat inflation, gold prices will almost inevitably increase. The gold market caught by surprise, when two of Eastern Europe’s biggest economies, Poland and Hungary, made rare purchases in the recent month.

Equity markets dropped this past week significantly; Nasdaq is seeing its biggest monthly loss since 2008, the Dow Jones Industrial Average is seeing its worst monthly drop in three years, and the S&P 500 is witnessing its worst monthly performance in seven years.

Therefore, gold’s gain is expected to continue growing in such an uncertain environment and until the world’s economies stand on solid ground. Gold prices are expected to remain trading in a tight manner ahead of next week’s mid-term election in the U.S. bouncing between 1,221 on the lower bound and 1,238 as an upper bound; however, there is a chance that the metal might extend that towards the 1,258 should the buyers exert more pressure.