Gold Holds $4,000 Support Amid Dollar and Rate Pressures
Gold prices continue to face pressure from a stronger U.S. dollar and higher Treasury yields, but buyers are actively defending the $4,000 support level. Last week, gold fell 3.75% and closed Friday near $4,136 an ounce, down 1.13% for the session. The metal has been struggling since its recent peak near $4,700, though sellers have not yet sustained momentum below $4,000.
The latest U.S. jobs report showed only 29,000 jobs added in September, with annual wage growth slowing to 3.0%. Despite this weaker employment data, gold still finished lower, indicating that the dollar's strength and bond-market pressures remain dominant factors. For gold to recover, both the dollar and real yields may need to ease.
Meanwhile, Asian countries are taking steps to secure their gold resources. Indonesia is considering export taxes on raw and semi-processed gold, while South Korea has resumed domestic gold accumulation. China continues to expand its official gold reserves, treating gold as a strategic asset.
Technically, gold remains vulnerable while the dollar and yields stay elevated, but the $4,000 support continues to attract buyers. A sustained break below this level could lead to deeper losses, while holding above it may set the stage for a recovery.