Gold Prices Decline for Second Week Amid Dollar and Yield Pressures
Gold prices experienced their second straight weekly decline, closing at US$4,140.06 per ounce on October 26, 2026. The week saw a high of US$4,197.53 and a low of US$4,111.93, with an average price of US$4,178.50. The drop marked a 4.2% decrease from the previous week's close of US$4,321.20, extending a correction after gold's strong performance earlier in 2026.
The primary drivers behind the decline were a stronger US dollar and sharply higher US Treasury yields, which increased the opportunity cost of holding non-yielding gold. Despite these pressures, gold managed to stay above the US$4,100 level, indicating underlying support. Dorex CEO John Kochanski noted that while the market faced significant challenges, the ability to hold above US$4,100 was noteworthy.
Friday's softer-than-expected US employment data provided some relief, pushing Treasury yields lower and reducing expectations of further Federal Reserve tightening. This offered late-week support to precious metals. The competing forces of higher yields and a strong dollar continued to pose resistance, while geopolitical uncertainty and central-bank diversification maintained longer-term support for gold.
Official-sector demand remained a key factor, with China adding 20.2 tonnes to its gold reserves in August, marking its 22nd consecutive month of accumulation. Kochanski emphasized that corrections are natural in long-term markets and that the focus should shift to what happens when yield and dollar pressures ease. Investors are likely to monitor US inflation, employment data, and Treasury yields in the coming weeks.