Gold prices slipped under a critical technical support level amid rising caution over U.S. interest-rate policy and weak manufacturing data. The downturn signals rising uncertainty for traders in the precious-metals market.
According to analysts at FXStreet, uncertainty over how quickly the Federal Reserve may cut rates is pushing investors out of gold. Fed Chair Jerome Powell recently indicated that further easing this year is not guaranteed. That stance has undermined the outlook for gold as a hedge against inflation.
At the same time, U.S. manufacturing activity has lost momentum. The latest Institute for Supply Management (ISM) index fell to 48.7 in October, marking its fourth month of contraction. The soft data further complicate the economic picture and add extra pressure on gold.
Technically, gold remains within a long-term bullish structure, but the recent pull-back tests key support zones. If those levels give way, the next leg higher may be delayed. If support holds, gold could resume its uptrend once market confidence returns.
For Nigerian investors and commentators, the price move matters on two fronts. First, changes in global monetary policy can affect the Nigerian naira and inflation, both of which influence local gold demand. Second, a weaker gold rally may reduce appeal for investment in gold‐linked assets and savings instruments that rely on global safe-haven themes.
Companies and high-net-worth individuals in Nigeria who view gold as part of their portfolio should watch for signs of renewed risk-off sentiment, a weaker dollar or stronger inflation data. Any of these may trigger a rebound in gold prices and change the current slide into a new buying phase.
