From the afternoon of September 27, the world gold price continued to increase to 2,672 USD/ounce. The technical chart also maintained a strong upward trend for gold.
More economic stimulus from China and safe-haven demand are supporting gold buying.
The People's Bank of China announced its biggest economic stimulus package since the pandemic earlier this week. The announcement comes amid speculation that China will miss its 5% GDP growth target this year. The Chinese government has said it will issue and use government bonds to support investment.
The military conflict between Israel and Hezbollah is escalating, with Israel ordering its military to prepare for a possible ground invasion of Lebanon, following recent intense aerial bombing.
All of this is keeping safe-haven demand for gold alive. However, veteran US expert Jim Wyckoff has a noteworthy warning on Kitco News. Jim Wyckoff has been involved in the stock, finance and commodities markets for 25 years and was a financial reporter for FWN for many years.
"If you are a commodity investor/trader, keep a close eye on the crude oil market," Jim Wyckoff advised. "Rising prices in any major commodity, including gold, will be difficult to sustain if crude oil reverses its trend and starts trending lower. In other words, weak crude oil prices could be a leading indicator of when the gold market will peak."
Crude oil prices are starting to fall this weekend. That's not exactly good news for gold speculators, according to Jim Wyckoff.
WTI crude oil prices fell sharply and are trading around $68 a barrel. Reports say Saudi Arabia is considering pumping more oil. DowJones Newswires headline reads: "OPEC+ Production Increase Will Lead to Oversupplied Market."
