Gold Dips as Treasury Yields Climb and Dollar Strengthens
Gold prices dropped during Tuesday’s trading session as rising US Treasury yields and a stronger dollar exerted downward pressure. The decline was somewhat tempered by easing expectations of an October interest rate hike by the Federal Reserve. The dollar index remained steady at 102.17, while traders assigned a 76.2% probability to the Fed holding rates unchanged this month, according to the CME Group’s FedWatch Tool.
The latest economic data revealed a slowdown in US services activity in September, though persistent domestic demand continued to strain supply chains, pushing input prices to their highest level in over four years. This suggests that inflationary pressures may linger into 2027. Despite these challenges, the precious metals market saw declines across the board, with gold (December delivery) falling by 6.8 dollars (0.15%), and spot gold dropping by 16.78 dollars (0.40%).
Silver, platinum, and palladium also experienced losses. Silver (December delivery) decreased by 0.435 dollars (0.70%), while spot silver fell by 0.52 dollars (0.85%). Platinum and palladium saw reductions of 16.75 dollars (0.95%) and 8.49 dollars (0.70%), respectively, in spot trading.