Gold dips to $4,122 on firm dollar

Spot gold fell 0.42 per cent to $4,122.44 an ounce on Tuesday, according to Mettis Global, as a firmer greenback and higher Treasury yields pressed the precious metal. A fading expectation of a Federal Reserve rate increase this month limited the decline. Bullion pays no income, so higher yields make it more costly to hold.

Long-dated US borrowing costs hit a 24-year peak on Monday, with the 10-year and 30-year Treasury yields both at that level, CNBC reported. Friday's jobs data showed US payroll growth slowed more than expected in September, and the two prior months were revised down. Traders still price in an 87 per cent chance of a December hike, based on CME's FedWatch Tool.

Silver fell 0.6 per cent to $60.67, while platinum dropped 0.7 per cent to $1,710.08 and palladium eased 0.2 per cent to $1,170.15. Separately, US services activity lost momentum in September, but a gauge of business input costs rose to its highest level in over four years. The data points to inflation that could remain elevated into 2027.