Gold edged lower on Oct. 6 as a stronger dollar and elevated U.S. Treasury yields weighed on prices, though easing expectations of a Federal Reserve interest rate increase this month limited losses.
Spot gold fell 0.3 percent to $4,128.83 an ounce at 0400 GMT. In Türkiye, early prices stood at around 6,520 Turkish Liras per gram.
U.S. 10-year and 30-year Treasury yields reached their highest levels in 24 years on Oct. 5.
Higher yields make gold, which pays no interest, less attractive, while a stronger dollar makes it more expensive for buyers using other currencies.
U.S. data also pointed to persistent inflation pressures despite slower growth in the services sector.
The Institute for Supply Management’s services index eased to 54.9 in September from 55.4 in August, while its prices measure rose to 74, the highest since July 2022.
“The next big catalyst is likely to stem from geopolitical risk in the Middle East,” Kyle Rodda, senior financial market analyst at Capital.com, told Reuters.
A significant shift in U.S. interest rate expectations could also drive the next move in gold, he said.
Yemen’s government said on Oct. 5 that Saudi-backed forces had regained control of a coastal strip extending from the Bab el-Mandeb Strait to Mocha. The Houthis disputed the claim.
