Gold holds steady as firm dollar, yields counter easing Fed rate hike bets
GLD•Spot gold rose 0.1% to $4,159.11 an ounce as softer-than-expected U.S. inflation reduced October rate hike bets, offsetting pressure from a stronger dollar and elevated Treasury yields. HSBC lowered its average gold price forecasts to $4,490 an ounce for 2026 and $4,825 for 2027.
1. Gold prices steady
Spot gold rose 0.1% to $4,159.11 per ounce by 11:17 a.m. EDT, while U.S. gold futures for December delivery gained 0.1% to $4,189.30. Gold prices fell more than 6% in September.
2. Rate hike bets ease
Ten-year U.S. Treasury yields reached their highest level in more than two decades, and a stronger dollar pressured bullion. Softer-than-expected U.S. inflation data reduced the market-implied chance of an October rate hike to 31%, from 45% before the release and 69% a week earlier. Investors awaited the September nonfarm payrolls report.
3. HSBC lowers forecasts
HSBC cut its average gold price forecasts for 2026 and 2027 to $4,490 and $4,825 an ounce, respectively, saying gold could face further near-term pressure but was likely nearing a bottom. The bank expects central banks to resume buying in response to price declines, especially near or below $4,000.
