Gold Prices Rebound as Dollar Retreat Offers Relief to Bullion Market

By KPD News Online Business Desk | October 8, 2026

Gold prices recovered on Thursday after touching a two-month low, as a pullback in the U.S. dollar provided some support to the precious metal.

Spot gold rose about 0.5% to $4,132.66 per ounce by 0140 GMT, while U.S. gold futures for December delivery gained 0.4% to $4,157.60. The rebound followed Wednesday’s decline, when bullion fell to its lowest level since August 5.

The recovery came as the dollar eased from an 18-month peak. Because gold is priced in dollars, a weaker greenback can make the metal less expensive for buyers using other currencies, potentially supporting demand.

Dollar and interest rates remain key

Despite Thursday’s recovery, analysts say the outlook for gold remains uncertain. Higher U.S. Treasury yields and expectations that the Federal Reserve could raise interest rates again have continued to weigh on bullion.

Higher interest rates can reduce the appeal of gold because the metal does not generate interest income.

Market pricing currently points to a relatively low probability of a U.S. rate increase in October, while expectations for a December hike remain considerably higher.

Chris Weston, head of research at Pepperstone, said gold would need to break above $4,275 an ounce for the short-term outlook to become more constructive.

The World Gold Council has also highlighted the influence of rising U.S. yields and the stronger dollar on gold’s recent weakness. At the same time, global gold exchange-traded funds recorded significant inflows in September despite the fall in prices, pointing to continued investor interest in the metal.

Precious metals also move higher

Other precious metals also recorded gains. Silver was around $60.18 an ounce, while platinum climbed about 2.1% to $1,665 and palladium gained roughly 1.6% to $1,142.86.

For gold traders, attention now remains firmly on the U.S. dollar, Treasury yields and signals from the Federal Reserve as investors assess whether Thursday’s rebound marks the beginning of a broader recovery or simply a temporary pause in the recent decline.