Why Is Gold Falling to $4,140 After Futures Fell 6% in…
By Tobi Opeyemi Amure
AI summary of the source article
Gold prices dropped alongside rising Treasury yields, failing to sustain a post-payrolls rally. Reuters reported spot gold at $4,140.06 an ounce on Friday, Oct. 2, down 0.9% for the session and roughly 3.4% on the week, while COMEX futures settled 1% lower at $4,162.30. A weak U.S. jobs report showing payrolls growth of 29,000 against expectations of 90,000 briefly lifted prices before gains reversed. CME FedWatch reduced the odds of an October Fed rate hike to 22.7%. Analysts noted that higher oil prices, elevated long-term Treasury yields, and the Federal Reserve's hawkish bias continue to pressure non-yielding gold.
Why it matters
Gold competes directly against long-term Treasury yields rather than short-term policy rates because it pays no interest. Rising yields and oil-driven inflation expectations can suppress gold prices even when weak economic data lowers rate-hike odds.
Key facts
- Spot gold fell to $4,140.06 an ounce on Oct. 2, down 0.9% on the day and about 3.4% on the week.
- COMEX gold futures fell 6.6% in September and settled at $4,162.30 on Oct. 2.
- U.S. nonfarm payrolls rose by 29,000 in September, significantly missing Reuters poll estimates of 90,000.