Gold prices fall in global markets

A strong US dollar and higher US Treasury bond yields have weighed on gold prices. Reuters reported that gold prices fell on Tuesday (October 6). However, the price of gold did not fall significantly as the likelihood of the Federal Reserve raising interest rates this month decreased.

The report said that spot gold prices fell 0.3 percent as of 12:20 pm Bangladesh time, taking it to $4,127.87 per ounce. At the same time, US gold futures were little changed at $4,155.30 per ounce.

The strengthening US dollar has made gold priced in dollars more expensive for users of other currencies. In addition, interest rates on US 10- and 30-year Treasury bonds hit their highest levels in 24 years on Monday.

Kyle Rhoda, senior financial markets analyst at Capital.com, said that in the long term, the fundamentals of the gold market are still strong. Geopolitical risks in the Middle East could be the next big driver of gold prices. On the other hand, even if there is a major change in expectations about US interest rates, gold prices could see a new rise.

According to data released last Friday, the pace of employment growth in the United States in September slowed more than expected. At the same time, the non-farm payrolls for the previous two months were also revised downwards. In light of this, market expectations for the possibility of a Fed interest rate hike in October have decreased.

However, traders still see an 87 percent chance of a rate hike at the December meeting, according to CME's FedWatch tool.

Meanwhile, other precious metals also fell. Spot silver fell 0.7 percent to $60.64 an ounce. Platinum fell 0.7 percent to $1,709.75 and palladium fell by the same amount.