Gold Holds Near $4,000 as Yields and Dollar Weigh on Prices
Gold prices are showing signs of stabilization near the $4,000 support level after a recent decline. The precious metal fell 3.75% last week, closing Friday at $4,136 an ounce, down 1.13% on the day. The drop follows a 6.64% decline in September, driven by a stronger U.S. dollar and higher Treasury yields.
A stronger U.S. dollar and elevated Treasury yields have been significant challenges for gold. The dollar gained about 1% during the week, while the 10-year Treasury yield rose above 5.25%. Although both eased slightly on Friday, gold received little relief, indicating ongoing investor caution despite weaker employment data.
Looking ahead, the economic calendar is light on major releases next week. Key events include the Canadian employment change report, FOMC meeting minutes, and the ISM services data. These will provide context on central bank policies as the year progresses.
The Bank of Japan faces a tough decision on interest rates after inflation accelerated. Meanwhile, weak U.S. hiring supports a possible Fed pause. Inflation data shows slight improvements, but spending growth remains too high for inflation to return to the Fed’s 2% target.