Gold Fails to Clear $4,200 Barrier Amid Stronger Yields

Gold prices fell short of breaking through the $4,200 milestone despite reaching a daily high of $4,227. The yellow metal is down nearly 1% as US Treasury yields edge higher following a less-than-stellar US employment report.

The US Nonfarm Payrolls in September came in at just 29K, well below estimates of 90K. This pushed the Unemployment Rate from 4.1% to 4.2%, a tenth up on the Federal Reserve's (Fed) projections for 2026 and 2027.

Money markets now expect a hold at the October 28 meeting, according to Prime Terminal, with odds standing at nearly 77%. However, for the December meeting, the chances are increasing to 88%.

The US Dollar Index (DXY) is down 0.14% at 101.89, and US Treasury yields remain moderately high with the US 10-year T-note yielding 5.9%, up 4 basis points.