Gold Fights to Hold $4,000 as Dollar Strength and Yields Weigh

Gold prices declined for a second consecutive week as a strong US dollar and historically high Treasury yields continued to pressure bullion. Despite this, gold has proven resilient, with its price hovering around $4,000 an ounce.

The market's reluctance to break through the $4,000 level can be attributed to persistent demand from various sources. US-listed gold ETFs attracted $3.8 billion in September, while global ETF buying reached a record high of 121 tonnes in August. China's central bank also continued its streak of purchases, adding 20.2 tonnes in August.

The near-term threat of an October rate hike by the Federal Reserve has eased, with markets assigning only a 28% probability to such an event. However, a strong employment report on Friday could push yields back towards their recent highs and put pressure on gold prices.