# Gold Prices Rebound From Two-Month Low as US Dollar Eases

- URL: https://stocks.freetheai.org/news/gold-prices-rebound-from-two-month-low-as-us-dollar-eases-e42731
- Published: 2026-10-08T05:28:22Z
- Category: commodities; sentiment: mixed; impact: medium
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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Gold prices recovered on Thursday, climbing from a two-month low as the US dollar pulled back from its recent 18-month high. Spot gold rose approximately 0.7% to trade near $4,141.09 per ounce, while December futures climbed to around $4,165. The retreat of the dollar index from its peak near 102.5 helped ease pressure on the precious metal, making it cheaper for international buyers.

Despite the short-term bounce, gold continues to face significant hurdles from high interest rates. The US 10-year Treasury yield remains near 5.3%, keeping the opportunity cost of holding non-yielding bullion elevated. The Federal Reserve still leans toward another interest rate hike before the end of the year, with markets pricing in an 80% chance of an increase by December. However, downside risks are partially cushioned by strong underlying demand, including a 23-month buying streak by China's central bank and 10 billion dollars in global gold ETF inflows during September.

Market participants are closely watching the $4,275 price level. Clearing this threshold is considered essential to reverse the short-term trend of lower highs and shift the market's momentum. On the downside, the $4,000 level remains a critical long-term support area where significant buying interest is expected to return.

## Key points

- Spot gold rose 0.7% to $4,141.09 per ounce as the US dollar eased from an 18-month high near 102.5.
- High US interest rates remain a major headwind, with the 10-year Treasury yield hovering around 5.3%.
- Global gold ETFs saw 10 billion dollars in inflows in September, bringing total holdings to a record 4,256 tonnes.
- Analysts identify $4,275 as the key price level gold needs to clear to reverse its recent downward momentum.

## Questions and answers

### Why did gold prices rise on Thursday?

Gold prices rebounded as the US dollar pulled back from an 18-month high near 102.5, which reduced immediate pressure on the metal and made dollar-priced bullion cheaper for overseas buyers.

### What major headwinds are still limiting gold's gains?

High interest rates and a 10-year US Treasury yield around 5.3% keep the opportunity cost of holding gold high. Additionally, the Federal Reserve is still expected to raise rates again before the end of the year.

### What price levels are analysts watching for gold?

Market participants are watching $4,275 as the threshold to break the recent trend of lower highs and revive the rally, while $4,000 is seen as a key long-term support level for buyers.