Gold Finds Steady Ground Near $4,150 as Rate Hike Odds Recede

As October begins and India's festive season gets underway, gold prices have started on a steady note near $4,150 an ounce. This follows a nearly 6% drop in September, which was driven by rising US Treasury yields and robust consumer spending.

The recent increase in long-dated US Treasury yields raised the opportunity cost of holding non-yielding bullion amid global rate tightening and fiscal deficit concerns.

However, a softer-than-expected August core PCE inflation reading has trimmed the probability of an October Federal Reserve rate hike to around 34%, providing some support for gold prices.

Dhruv Joglekar, Assistant Fund Manager at Monarch PMS, expects gold prices to find solid support in October as the market focuses on Friday's US jobs report for near-term policy direction.