Gold inches towards $4,180 on softer dollar

October 09, 2026 (MLN): Gold prices edged up on Friday as a softer US dollar and falling Treasury yields made the metal more attractive, even as investors weighed persistent inflation worries and the outlook for US Federal Reserve interest rates.

Currently, spot gold is up 1.84% to $4,179.79  an ounce as of [09:45 am] PST, according to data reported by Mettis Global.

St Louis Fed President Alberto Musalem said the US central bank would need to raise rates again to bring inflation back to its 2% target, though he did not say what policymakers should do at their meeting later this month, according to CNBC.

The Fed voted unanimously last month to raise its policy rate by a quarter of a percentage point. Separately, US President Donald Trump said Washington would not attack Iran before November's midterm congressional elections, adding that the two countries were holding "productive" talks to end the six-month-old war.

The dollar's rally paused, making greenback-priced bullion cheaper for holders of other currencies, while the benchmark 10-year Treasury yield slipped for a second straight session.

According to CME's FedWatch tool, traders see an 18pc chance of a rate hike in October and an 82% probability of an increase in December.

Among other precious metals, spot silver rose 1.1% to $60.00, platinum gained 2.2% to $1,670.15 and palladium climbed 2.1% to $1,146.98.

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