Rising US dollar and Treasury yields weigh on gold prices as markets await Federal Reserve meeting minutes.

On Wednesday, October 7, the US dollar and Treasury yields climbed once again, pressuring gold prices. The US Dollar Index is currently trading around 102.30, hovering near levels not seen since April 2025. Meanwhile, the yield on the US 10-year Treasury note rose to approximately 5.324%, nearing Monday’s reading of 5.349%, marking its highest level since 2002.

The Middle East conflict has pushed up oil prices and heightened inflation risks, while rising government debt and fiscal deficits, coupled with sustained US economic resilience, have driven borrowing costs higher. Traders will closely monitor the FOMC meeting minutes for the latest clues on whether the Fed may pursue further tightening. Since the outbreak of the Middle East conflict in late February, market expectations of a persistently hawkish policy outlook have continued to weigh on gold prices, which currently trade more than 25% below their all-time high of nearly $5,600 reached in January. However, long-term demand remains a fundamental support for gold. (Jin10)