Gold Holds $4,000 Support Despite Stronger Dollar and Higher Rates
Gold prices are facing pressure from a stronger U.S. dollar and rising Treasury yields, but buying interest near the $4,000 level is preventing a deeper decline. The metal fell 3.75% last week, closing Friday at $4,136 an ounce, down 1.13% on the session. The broader correction has seen gold drop 6.64% in September, though buyers have consistently defended the $4,000 support.
A sharp reversal from near $4,700 led to a drop toward $4,100, but sellers have struggled to maintain momentum below $4,000. The recent U.S. jobs report showed weaker-than-expected hiring, with just 29,000 jobs added in September and annual wage growth slowing to 3.0%. Despite this, gold finished lower, highlighting the dominance of dollar strength and bond-market pressures.
Meanwhile, Asian countries are taking steps to secure more value from domestic gold production. Indonesia is introducing export taxes on raw and semi-processed gold, while South Korea has resumed physical gold accumulation through a local buying program. China continues expanding its official gold reserves and strengthening control over its supply chain, with Singapore and Hong Kong also developing regional gold infrastructure.
Technically, gold remains vulnerable while the dollar and Treasury yields stay elevated, but the $4,000 area continues to attract buyers. Holding above this level could allow for stabilization and a potential recovery. However, a sustained break below $4,000 would weaken the technical structure and increase the risk of further declines.