Gold steady as firm dollar counters softer US rate-hike bets

Tue Oct 06 2026

Gold prices were little changed on Tuesday as a firmer dollar offset support from easing expectations of a Federal Reserve rate hike this month.  Spot gold held at $4,141.81 per ounce by 0033 GMT, while US gold futures for December delivery edged 0.3% higher to $4,169.10.

The dollar remained firm, making dollar-denominated commodities more expensive for holders of other currencies. The 10- and 30-year US Treasury yields reached 24-year highs on Monday as negative sentiment in the bond market continued.

Expectations of a US rate hike in October eased after Friday's data showed US job growth slowed more than expected in September, while nonfarm payrolls for the previous two months were revised lower.

However, traders are still pricing an 86% probability of a Fed rate hike in December, according to the CME FedWatch Tool.

Rising interest rates increase the opportunity cost of holding non-yielding gold.Gold remains a strategic reserve asset as concerns about rising government debt and geopolitical instability increase its appeal  as a haven from risk, two central bankers said on Monday, despite this year's rise in bond yields.

US services-sector activity slowed in September, while strong domestic demand stretched supply chains and pushed a measure of prices paid by businesses for inputs to its highest level in more than four years. This suggests inflation could remain elevated into 2027.

Elsewhere, Saudi-backed Yemeni government forces made a rapid advance to retake the coast around the Bab el-Mandeb Strait up to the city of Mocha, according to the government, pushing Iran-backed Houthis out of most of the areas they seized last month.

Among other metals, spot silver was flat at $61.04, platinum edged 0.1% higher to $1,722.40, and palladium firmed 0.2% to $1,175.39.

Source: http://in.reuters.com