Gold remained under pressure on Oct. 7 as both the U.S. dollar and Treasury yields moved higher, with traders waiting for fresh guidance from the Federal Open Market Committee minutes. The dollar index was around 102.30, hovering near its highest level since April 2025. At the same time, the yield on the 10-year U.S. Treasury rose to about 5.324%, close to Monday’s 5.349%, which marked the highest level since 2002. According to the report, higher oil prices linked to the Middle East conflict, rising inflation risks, expanding government debt and fiscal deficits, and the resilience of the U.S. economy have all contributed to higher funding costs. Since the conflict broke out in late February, expectations for a hawkish Federal Reserve path have continued to pressure gold. The metal is now down more than 25% from its record high near $5,600 reached in January, though long-term demand is still seen as providing underlying support.
Gold came under pressure on Oct. 7 as the U.S. dollar and Treasury yields both moved higher, while traders looked ahead to the minutes from the Federal Open Market Committee for clues on the Federal Reserve’s next step.
The U.S. dollar index was around 102.30, hovering near its highest level since April 2025. Meanwhile, the yield on the 10-year U.S. Treasury climbed to about 5.324%, close to the 5.349% hit on Monday, a level described as the highest since 2002.
The report said the Middle East conflict has pushed up oil prices and added to inflation risks. At the same time, rising government debt and fiscal deficits, along with continued resilience in the U.S. economy, have driven funding costs higher.
Traders are now watching the FOMC minutes closely for the latest signals on whether the Fed could tighten policy further.
Since the Middle East conflict broke out in late February, expectations for a more hawkish Fed outlook have continued to weigh on gold prices. Gold is now down more than 25% from the record high near $5,600 reached in January. Even so, the report noted that long-term demand still offers fundamental support for the metal.
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