Gold prices remained stable on Thursday, October 1, 2026, as markets awaited the release of key US jobs data to determine the Federal Reserve's next step on monetary policy. Spot gold was at $4,155.65 per ounce, while US gold futures were unchanged at $4,185.40. The US non-farm payroll report for September is due for release on Friday, with investors closely watching the data for clues on the US interest rate path.
The US dollar maintained its strength, supported by rising US Treasury yields, making dollar-priced metals more expensive for holders of other currencies. Silver rose 0.5% to $60.69 per ounce, platinum gained 0.1% to $1,708.43, and palladium fell 0.3% to $1,200.15. Investors are also keeping an eye on the US economic data, which could influence the Federal Reserve's decision on interest rates.
According to Ilya Spivak, head of global macroeconomics at Tasty Live, the recent personal consumption expenditures data provided some support to gold, but this was offset by rising yields. He noted that upcoming data will be crucial in determining how the market reacts and its impact on interest rate expectations. Spivak added that the market is currently dealing with many conflicting factors.
On Wednesday, US inflation data showed that prices rose at a slower pace than expected in August, and price pressures in the previous month were more moderate than previously estimated. Gold prices briefly rose after the data but closed lower at the end of the session. The data led to a reduction in expectations of a Federal Reserve rate hike in October, but markets see an 87% chance of a rate increase in December.
Higher interest rates tend to reduce the appeal of gold, which does not generate interest. Gold prices fell by more than 6% in September. Bart Melek, head of commodity strategy at TD Securities, said it is unlikely that gold will recoup all its September losses, but there are reasons to believe that the worst of the correction may be over, and there are grounds for a price increase.
On the geopolitical front, Iran said on Wednesday that it had received a response from the US to its latest proposals for reviving a stalled ceasefire in the Gulf. This comes after US President Donald Trump rejected the proposal days ago. The situation in the Gulf remains a concern for investors, who are also monitoring the impact of US sanctions on Iran.
In the near term, gold prices are likely to remain under pressure as investors await more clarity on US monetary policy and the economic outlook. Key points to watch include the US jobs data and the Federal Reserve's decision on interest rates. The market is also keeping an eye on developments in the Gulf and their potential impact on gold prices. KEY_POINT: Gold prices are steady as investors await US jobs data. KEY_POINT: US interest rate expectations are influencing gold prices. KEY_POINT: Geopolitical tensions in the Gulf are also a concern for investors.
