Gold Dips as Dollar Strength and Bond Yields Rise

On October 6, gold prices declined slightly due to a stronger U.S. dollar and rising Treasury yields, which made the non-yielding asset less appealing. Spot gold dropped 0.3% to $1,928.83 an ounce by 0400 GMT, while in Türkiye, early prices were around 6,520 Turkish Liras per gram.

The U.S. 10-year and 30-year Treasury yields hit their highest levels in 24 years on October 5, increasing the cost of holding gold for buyers using other currencies. Despite slower growth in the services sector, U.S. data indicated persistent inflation pressures, with the Institute for Supply Management’s services index easing slightly and its prices measure reaching a 2022 high.

Analysts suggest that the next major move in gold prices could be driven by geopolitical risks in the Middle East or shifts in U.S. interest rate expectations. Kyle Rodda, a senior financial market analyst at Capital.com, highlighted these factors as potential catalysts.

Meanwhile, tensions in Yemen escalated as the Saudi-backed government claimed control of a coastal strip, a claim disputed by the Houthis.