World gold prices may increase for the fourth consecutive week

World gold prices recorded a third consecutive weekly increase and reached the highest level since May. The spreading conflict in the Middle East along with reports of strong US economic growth are factors leading to the recent rise of the precious metal.

The US Bureau of Economic Analysis (BEA) has released its PCE inflation report for September. Accordingly, the report recorded that the US PCE inflation index reached 3.4% compared to the same period last year in September.

Risks in the credit system are also creating safe-haven demand for gold, according to Ryan McIntyre, managing partner at financial firm Sprott Inc. Gold prices have held steady while bond yields hit 5%, a 16-year high.

In addition, many investors are worried about the financial outlook of the US government . The government's defense debt is increasing, exceeding 33 trillion USD.

According to Kitco News, 11 Wall Street analysts participated in the gold survey. Six experts, or 54%, expected to see higher gold prices this week. Meanwhile, three analysts, or 27%, predicted lower prices and two others, or 18%, were neutral.

In addition, 602 people voted in an online Main Street poll. Of those, 395 retail investors, or 66%, expect gold to rise next week. Another 126, or 21%, predict lower prices. The remaining 81, or 13%, are neutral on the precious metal’s near-term outlook.

The Fed's interest rate decision on Wednesday will be the most anticipated economic event of the week. According to the CME FedWatch Tool, the market sees a nearly 100% chance that the Fed will leave rates unchanged at 5.25% to 5.5%. At the same time, the Fed is expected to maintain its restrictive monetary policy for the foreseeable future.

Kitco senior analyst Jim Wyckoff believes that gold prices are likely to continue their upward trajectory this week. “Gold is holding steady and higher as technical charts continue to show signs of optimism and safe-haven demand remains evident,” he said.