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On this day — October 26, 2021

Diwali: The Hindu festival of lights is the largest annual gold-buying event in India. Dhanteras (two days before Diwali) is specifically dedicated to buying gold and silver. India sees billion-dollar surges in jewellery sales over the five-day Diwali season.

Tuesday — a normal trading day. Tuesday is also when the CFTC publishes Commitments of Traders data for the prior week, often producing intraday movement.

Day 299 of 365 · Q4 2021 · 81.9% through the year

October 2021 gold market: Inflation worries steady gold

Range-bound

Inflation worries offset taper pressure.

Gold recovered toward $1,790–$1,800 in October as surging energy prices and persistent supply-chain disruptions drove inflation expectations higher, reviving some hedging demand even as the taper loomed.

What drove gold in October 2021

  • surging energy prices
  • rising inflation expectations
  • supply-chain disruptions
  • looming Fed taper
Themes#inflation#energy prices#supply chains

Key events in October 2021

  1. Oct 22Gold firms near $1,800 as inflation gauges climb

What happened next

November brought a sharp inflation-driven spike and an equally sharp reversal.

For gold buyers

October showed gold could still catch a bid on inflation fear, even with the Fed preparing to tighten.