Gold Dips as Stronger Dollar and Rising Yields Apply Pressure
Gold prices dipped slightly on Tuesday, facing pressure from a stronger US dollar and rising Treasury yields. Spot gold fell 0.3% to $4,128.69 per ounce by 0155 GMT, while US gold futures remained nearly unchanged at $4,156.00. The firmer dollar made gold more expensive for investors using other currencies, contributing to the decline.
Despite the losses, gold’s downward movement was limited by easing expectations of a Federal Reserve interest rate hike in October. This shift came after recent data showed slower-than-expected US job growth in September and downward revisions to prior months' nonfarm payrolls. However, traders still see an 87% probability of a rate hike in December, according to CME's FedWatch Tool.
Analyst Kyle Rodda of Capital.com noted that gold’s long-term fundamentals remain supportive, with potential catalysts including geopolitical risks in the Middle East or changes in US rate expectations. Meanwhile, other precious metals also saw declines, with spot silver dropping 0.6% to $60.67, platinum falling 0.7% to $1,710.08, and palladium easing 0.2% to $1,170.15.
Elsewhere, geopolitical tensions persisted as Saudi-backed Yemeni forces advanced to retake areas around the Bab el-Mandeb Strait, pushing back Iran-backed Houthi rebels. Additionally, data showed slowing US services sector activity in September, with inflation pressures suggesting elevated levels into 2027.