Why Gold Just Hit Its Lowest Price in Two Months
Gold fell 1.2% to $4,113.89 an ounce on Oct. 7. That was its lowest price since Aug. 5. Gold futures have now dropped in three of the past four sessions as the U.S. dollar rose.
The drop followed a 0.5% fall on Oct. 6 to $4,120.16 an ounce. The U.S. Dollar Index, which tracks the dollar against other big currencies, rose 0.1% to 102.27, according to Yahoo Finance. That report linked the slip to a stronger dollar and higher yields, or interest, on government bonds.
Traders saw a 22% chance of a rate rise by the Federal Reserve, the U.S. central bank, in October, according to Reuters. The Wall Street Journal titled its Sept. 28 note 'Gold Falls to Seven-Week Low as Rate-Hike Bets Rise'. By Oct. 7, traders were waiting for Fed meeting notes for hints on future rates, according to Reuters.
That drop came after a small rise. On Oct. 1, spot gold rose 0.2% to $4,165.29 an ounce by 2:08 p.m. EDT, and U.S. gold futures for December delivery ended 0.4% higher. Gold stayed above $4,000 an ounce even as bond yields jumped, according to Reuters. Prices had also slipped in early Asian trading in early September when the dollar was strong.
ANZ gave a longer-term view. It expects gold to rise to $4,800 in 2026, according to ANZ. It said gold and silver stay strong because investors keep buying. It expects rate cuts in 2026 only in the U.S., Australia and Indonesia.
That $4,800 goal is much higher than its February 2025 call for gold to peak at $3,050 an ounce in June and then sit around $2,900 in the second half of 2025. In older commentary with no date, ANZ said gold rose 0.9% to $1,677 on a weaker dollar, and a move above its 20-day average price may have led chart-followers to buy.
The broader context here matters for ordinary savers. Gold pays no interest. When bond interest rises, bonds pay more by comparison. It is like choosing between a savings account that now pays more and gold that pays nothing. A strong dollar also makes gold cost more for buyers using other currencies.
Looking at what could happen next, the market looks nervous, not settled. A 22% chance is low. It is not what most traders expect. But it still pushed gold to a two-month low. So words from the Fed and new inflation numbers can move prices fast. Traders who follow price charts with computers could make any rise or fall bigger.
