Gold Dips to Two-Month Low Amid Stronger Dollar and Rising Yields

Gold prices dropped to a two-month low of $4,100 an ounce on Tuesday, driven by a stronger dollar and rising Treasury yields. Despite softer U.S. jobs data and reduced expectations of a Federal Reserve rate hike in October, these macroeconomic factors weighed heavily on the precious metal.

WTI crude oil prices also declined as increased crude flows from the Middle East and the Group of Seven’s decision to release emergency reserves alleviated near-term supply concerns. This move helped ease market tensions, contributing to the downward trend in oil prices.

In contrast, copper futures rose to around $6.60 per pound, marking the third consecutive session of gains. This rally was supported by a broader uptick in risk assets, particularly technology and AI stocks. Additionally, copper demand is being fueled by the rapid expansion of data centers and power infrastructure needed to support AI development.

For specific trading strategies, Axis Securities Ltd recommended selling gold below 148,700 with a stop-loss above 149,800 and targets at 147,000 and 146,000. Similarly, they advised selling silver below 224,000 with a stop-loss above 228,000 and targets at 219,000 and 215,000. Conversely, they suggested buying copper above 1,417 with a stop-loss below 1,410 and targets at 1,427 and 1,433.