World gold prices today (October 25) continued to cool down after a hot increase. Higher US dollar index and rising US Treasury bond yields were factors that restrained the precious metal. Besides, Nymex crude oil prices were almost stable and traded around $85.50/barrel. The yield on the benchmark 10-year US Treasury bond is currently at 4.857%.

In addition to the news surrounding the conflict in the Middle East, the US government will release several important economic reports this week. In particular, GDP growth of 2.1% in the second quarter is expected to improve to 4.7% in the third quarter.

In addition, the personal consumption expenditures (PCE) price index for September will also be revealed. Inflation is forecast to increase from 0.1% to 0.3% compared to the previous month.

According to analysts at Heraeus - the world's leading metal producer, gold prices continue to ignore investors' expectations of the FED raising interest rates and Treasury bond yields climbing, remaining near $2,000/ounce.

"Higher-than-expected US inflation and retail sales have increased the possibility of the Fed tightening monetary policy in November. Demand for shelter due to the conflict in the Middle East means that some price increases may be limited by short-term profit-taking," the expert assessed.

In another development, in the context of the recent surge in world gold prices, statistics show that up to 7.97 million ounces of gold have "flowed" out of ETF funds since the peak in May. However, ETF investors may be about to return to gold-backed funds this week, if they fear missing out on another upcoming price increase.

Some other experts said that gold prices still tend to increase strongly this week as the instability in the Middle East continues and shakes the market.