Gold heads for weekly drop as strong dollar, elevated Treasury yields weigh
GLD•Gold fell 0.8% to $4,145.68 an ounce and was down about 3.3% for the week, pressured by a strong dollar and elevated Treasury yields. September U.S. payrolls rose by 29,000, while traders priced in a 22% chance of a Fed rate hike this month, down from about 70% earlier in the week.
1. Gold falls after gains
Spot gold fell 0.8% to $4,145.68 an ounce by 11:38 a.m. EDT and was down about 3.3% for the week. U.S. gold futures declined 0.7% to $4,173.50. Bullion had gained more than 1% earlier in the session after data showed September job growth slowed more than expected, but later reversed those gains as the dollar and Treasury yields weighed on prices.
2. Jobs and rate bets
U.S. nonfarm payrolls rose by 29,000 in September, following a downwardly revised increase of 133,000 in August; economists had forecast a 90,000 gain. Traders saw about a 22% chance of a Fed rate hike this month, compared with around 70% earlier in the week. Han Tan of Bybit said gold investors may be cautious because the Fed retains a hawkish bias.
3. Other metals decline
Gold had fallen more than 20% since the U.S.-Israeli war with Iran began in late February, with expectations that conflict-driven inflation could keep rates higher for longer cited as pressure. Silver fell 1.1% to $60.17 an ounce, platinum retreated 1.9% to $1,692, and palladium declined 0.4% to $1,166.25; all three were poised for weekly losses.
