Gold prices dip as dollar strength and yields rise

Gold prices dipped slightly on Tuesday (Oct 6, 2026), weighed down by a stronger US dollar and rising Treasury yields. Spot gold fell by 0.3 percent to US$4,128.83 per ounce, while US gold futures saw little change, hovering around US$4,155.90. The gains in the US dollar made gold more expensive for international buyers, contributing to the decline.

Despite the drop, losses were cushioned by easing expectations of a US Federal Reserve interest rate hike in October. This shift came after data on Friday showed weaker-than-expected job growth in September and downward revisions to previous nonfarm payroll figures. However, traders still see an 87 percent probability of a rate increase in December, according to CME’s FedWatch Tool.

Analysts remain optimistic about gold’s long-term prospects, citing geopolitical risks in the Middle East as a potential catalyst. Kyle Rodda, senior financial market analyst at Capital.com, noted that significant changes in US rate expectations could also drive gold’s next major move. Meanwhile, data from the US services sector showed slowing activity and rising input costs, hinting at persistent inflation into 2027.

In other precious metals, silver, platinum, and palladium all experienced minor declines. Spot silver dropped 0.6 percent to US$60.69, platinum fell 0.5 percent to US$1,712.20, and palladium eased 0.5 percent to US$1,166.86.