Gold Prices Slide as Dollar and Yields Reign Supreme

Gold prices fell for the fifth week in six on Friday, as the US dollar and Treasury yields rose to multi-decade highs. Despite a weak September employment report that sparked brief hopes of a Federal Reserve rate hike pause, the market's focus shifted back to inflation concerns.

The Labor Department reported nonfarm payrolls expanded by 29,000 in September, far below the projected 90,000 increase. The unemployment rate ticked up to 4.2% from 4.1% in August. However, investors soon turned their attention to Treasury yields, which rebounded as they focused on longer-term inflation and fiscal concerns.

Treasury yields are at multi-decade highs, with the 10-year yield standing near 5.26% and the 30-year yield hovering around 5.62%. A stronger dollar makes dollar-denominated gold more expensive for buyers using other currencies, adding pressure on prices.