Gold Stagnates as Rising Treasury Yields Counter Inflation Data

While bullion struggled for momentum, silver managed a 1.04% gain to reach $60.90. The broader market sentiment was buoyed by North American equities, where the Nasdaq Composite climbed to a record 27,477.31. Investors are currently weighing a cooling U.S. labor market—highlighted by September’s modest payroll growth of 29,000—against persistent inflation signals from the ISM services PMI, which saw its prices index jump to 74.0, the highest level since July 2022.

This economic backdrop has kept the 10-year Treasury yield anchored near 5.31%, a level not seen since April 2002. Traders are now looking toward the upcoming release of the September Federal Reserve minutes and weekly jobless claims to determine if the current yield environment will continue to cap gold’s upside. Meanwhile, energy markets provided a degree of relief; Brent crude settled down 1.9% at $100.32, as increased supply signals from Saudi Aramco and G7 reserve releases helped offset lingering geopolitical tensions in the Strait of Hormuz.