Gold prices extended their decline on Tuesday morning, marking a fourth consecutive session of losses as a firmer US dollar and waning expectations of a Federal Reserve rate cut next month pressured the precious metal.
Gold futures fell 1.2% to $4,026.30 per ounce, while spot gold lost 1.5% to $4,024.38 an ounce at the time of writing.
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The moves came as the dollar strengthened, weighing on commodities priced in the US currency.
“The dollar was a bit stronger today and also some of the speculative length has been reduced this past week. The gold market is going to consolidate for now,” said Marex analyst Edward Meir.
Market attention this week is fixed on a series of US economic releases, including Thursday’s September nonfarm payrolls report, for signals on the strength of the world’s largest economy and the Fed’s next steps.
“Expectations the Fed will cut again next month dropped to 42% overnight from a high of almost 100% soon after the September decision. This has weighed on investor appetite for gold,” ANZ said in a note.
“Nonetheless, structural tailwinds, such as geopolitical uncertainty, concerns about US debt sustainability, de-dollarisation trends and central bank buying, are expected to support investment demand in the medium- and long-term.”
Oil prices slipped on Tuesday after the resumption of loadings at a key Russian export hub eased supply concerns, while a downbeat long-term forecast from Goldman Sachs added pressure to the market.
Brent crude futures fell 0.6% to $63.81 per barrel at the time of writing, while West Texas Intermediate (WTI) futures dropped 0.6% to $59.47 a barrel.
The moves came after Russia’s Novorossiysk port resumed crude shipments on Sunday following a two-day halt caused by what industry sources and LSEG data described as a Ukrainian drone and missile strike.
Crude oil is trading marginally lower “as reports indicate that loadings have resumed sooner than expected at Novorossiysk,” IG analyst Tony Sycamore wrote in a note.
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Sentiment was further weighed by a Goldman Sachs (GS) report that projected oil prices would decline through 2026, driven by a surge in supplies that is expected to keep the market in a surplus of about 2 million barrels per day. The bank forecast Brent crude to average $56 per barrel in 2026 and WTI $52, well below current forward curves of $63 and $60 respectively.
“The 2025-2026 supply wave mostly results from long-cycle projects that saw final investment decisions (FIDs) just before the pandemic, got delayed during COVID, and are now all coming online and from OPEC’s strategic decision to unwind production cuts,” the bank wrote.