Gold dips to $4,122 on firm dollar

October 06, 2026 (MLN): Gold prices edged lower on Tuesday as a stronger US dollar and climbing Treasury yields weighed on the metal, although a fading outlook for a Federal Reserve rate hike this month helped cap the decline.

Currently, spot gold is down 0.42% to $4,122.44  an ounce as of [11:09 am] PST, according to data reported by Mettis Global.

Bond market weakness remained a key pressure point, with 10-year and 30-year US Treasury yields touching their highest levels in 24 years on Monday, according to CNBC.

Higher yields raise the opportunity cost of holding gold, which pays no interest.

Bets on an October rate increase cooled after Friday's labor data showed US job growth slowed by more than expected in September, with nonfarm payrolls for the previous two months also revised down.

Even so, traders still see an 87% chance of a hike in December, according to CME's FedWatch Tool.

Separate data showed US services activity lost pace in September. At the same time, strong domestic demand strained supply chains and pushed a gauge of input prices paid by businesses to its highest in over four years, pointing to inflation that could stay elevated into 2027.

On the geopolitical front, Saudi-backed Yemeni government forces made a rapid advance to retake the coastline around the Bab el-Mandeb Strait up to the city of Mocha, the government said.

The move pushed the Iran-backed Houthis out of most of the areas they seized last month.

Among other precious metals, spot silver fell 0.6% to $60.67, platinum slipped 0.7% to $1,710.08, and palladium eased 0.2% to $1,170.15.

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