Global Gold Market Decline
Gold prices slip across regional markets as strong dollar and bond yields weigh.
Anonymous
Key Points
1
Despite the reduced odds of an October Fed hike, traders still saw an 88% probability of a December increase; analyst Tim Waterer said markets continued to view the broader hiking cycle as intact. The Fed had raised its benchmark rate the previous month to 3.75%–4.00%.
2
The report also highlighted geopolitical and energy-market risks: Yemen’s Saudi-backed government said it was launching a campaign to retake areas held by the Iran-backed Houthis, while rising crude exports and an oil release by G7 nations added to supply. Analysts said developments in the Middle East could affect gold through oil prices and inflation expectations.
3
In India, the Multi Commodity Exchange price fell as much as 0.7% and opened at ₹1.51 lakh per 10 grams, even as the article said global gold rates were trading higher after softer U.S. economic data.
4
Dubai’s latest decline followed a midweek rebound: 24-karat gold moved from Dh505.50 per gram on Monday to Dh497.25 on Tuesday, then recovered to Dh504.25 by Friday before Saturday’s drop. It remained below Monday’s level.
5
A separate Indian market report said the December 4, 2026 MCX gold futures contract slipped ₹140 to about ₹150,390 per 10 grams. It also noted that retail quotations exclude 3% GST and making charges, which can range from 5% to 25%.
Gold prices slipped across major markets in early October as a stronger U.S. dollar and elevated bond yields pressured bullion prices. RTTNews reported that gold for December delivery dropped $5.80 to $4,156.50 an ounce. Weaker-than-expected U.S. jobs data on October 5 reduced expectations of an immediate Federal Reserve rate hike, which helped limit losses in the market.
Gold prices fell across India, Jordan, and Dubai during the period. NewsBytes reported that Indian gold prices dropped to ₹1.49 lakh per 10 grams, while TradingView noted the Multi Commodity Exchange saw December futures slip nearly 1% due to the firm dollar. Despite near-term weakness, traders still priced in an 88% probability of a December Fed rate hike, keeping the broader hiking cycle intact.
Fed Rate Expectations Shape Gold Outlook
The Federal Reserve had raised its benchmark rate to 3.75%–4.00% in September, and markets initially braced for another hike in October. However, disappointing U.S. jobs data shifted sentiment. Analyst Tim Waterer noted that despite reduced October rate-hike odds, traders continued to view the broader hiking cycle as intact, with an 88% probability of a December increase still priced into markets.
Middle East Tensions and Energy Supply Pressures
Geopolitical risks in the Middle East added another layer of uncertainty for gold traders. Yemen's Saudi-backed government announced a campaign to retake areas held by the Iran-backed Houthis. RTTNews noted that rising crude exports and a G7 oil release added to supply concerns. Analysts warned that Middle East developments could affect gold through oil prices and inflation expectations, creating broader volatility in markets.
Regional Price Declines Across India and Dubai
In India, TradingView reported the Multi Commodity Exchange price fell as much as 0.7%, opening at ₹1.51 lakh per 10 grams. NewsByteApp noted that December 2026 MCX gold futures slipped ₹140 to about ₹150,390 per 10 grams. Dubai's 24-karat gold moved from Dh505.50 per gram on Monday to Dh497.25 on Tuesday before partially recovering to Dh504.25 by Friday.
Bangladesh Adjusts Gold Pricing Following Regional Slide
Bangladesh felt the ripple effects of global gold softness. BangladeshPost reported that the Bangladesh Jewellers Association reduced gold prices by Tk 1,691 per bhori, setting the new price at Tk 2,29,081 per bhori including VAT. The price cut took effect Monday morning, reflecting how regional markets quickly adjust to international bullion trends and currency movements.
Sentiment
Mostly NegativeNEGATIVENEUTRALPOSITIVE
Publishers
18
Articles
27
Reach
45
A
AnonymousAuthor
