Gold Slumps as Dollar and Yields Rise

Gold prices dipped 0.3% early Tuesday, reflecting pressure from a stronger U.S. dollar and rising Treasury yields. The yellow metal traded at $4,128.69 an ounce as of 9:55 p.m. ET Monday, while U.S. gold futures saw minimal movement at $4,156.

The dollar’s strength makes gold more costly for foreign buyers, while higher Treasury yields reduce the metal’s appeal since it doesn’t offer interest. The 10-year and 30-year Treasury yields hit 24-year highs Monday, further weighing on gold.

Traders scaled back expectations for a Federal Reserve rate hike in October after weaker-than-expected September payroll data and downward revisions to earlier job gains. Interest rate swaps now suggest only a 23% chance of an October rate increase, though a quarter-point hike by December remains likely.

Investors are awaiting the release of the Fed’s September meeting minutes on Wednesday, Oct. 7, at 2 p.m. ET. These minutes could offer deeper insights into policymakers’ views on inflation, employment, and interest rates.