Gold Prices Steady as Investors Weigh US Interest Rates and Monetary Policy

Gold prices remained steady in early trade on October 1, while silver gained, as investors continued to assess the outlook for US interest rates and Treasury yields. On COMEX, gold was trading at $4,191.90 an ounce, up $5.20 or 0.12%, with a high of $4,194.60 and a low of $4,169.40 an ounce.

Silver prices moved to $60.965 an ounce, up $0.399 or 0.66%, after trading between $60.260 and $61.070 an ounce. The recent moves come after gold recovered on September 30 following a sharp correction in the previous sessions.

Daniel Munday, Principal Analyst at VT Markets, noted that higher US Treasury yields can weigh on gold and silver because they don't generate interest income. With several US economic data releases due this week, including the October 2 jobs report, investors are likely to focus on whether incoming data changes expectations for the Fed's October 28 meeting.

Nirpendra Yadav, Senior Research Analyst at Bonanza, highlighted that gold remains around 10% above year-ago levels and is driven largely by a stronger US dollar, elevated Treasury yields, and changing expectations around US monetary policy. Physical demand during the festive season could provide support, although high prices may continue to affect jewellery demand.

Vikram Subburaj, CEO of Giottus.com, advised investors building long-term exposure to consider staggered purchases rather than attempting to identify the exact market bottom.