Gold Holds Steady Amid Mixed US Jobs Data and Fed Rate Uncertainty
Gold prices held steady in early trading on October 5, 2026, after experiencing their largest weekly decline since June. As of 1:14 p.m. in Singapore, spot gold dipped slightly by 0.1% to $4,137.38 an ounce, following a 3.4% drop the previous week. The market’s cautious stance comes amid mixed signals from the US jobs data and rising bond yields, which are influencing expectations around the Federal Reserve’s interest rate policy.
The latest US nonfarm payrolls report showed a smaller-than-expected increase of 29,000 jobs in September, easing some pressure on the Fed to raise rates aggressively to combat inflation. Traders now see only a 20% chance of a rate hike in October, down sharply from 70% just a week ago. Higher interest rates typically reduce demand for gold, as the precious metal does not offer interest payments.
Despite the recent slowdown in job growth, inflationary pressures persist, with Brent oil prices remaining above $100 a barrel. Treasury Secretary Scott Bessent dismissed concerns over high borrowing costs, noting they align with global trends. Gold’s recovery has been hampered by elevated Treasury yields, currently around 5.2%, as well as a strengthening US dollar, which makes gold more expensive for international buyers.
Other precious metals saw mixed movements. Silver climbed 1.1% to $61 an ounce after a steep 6% drop last week, while platinum advanced slightly and palladium remained flat. The Bloomberg Dollar Spot Index rose 0.3%, extending its gains over the past three weeks.