Gold holds its ground despite yields at multi-decade highs
Real yields would normally weigh on gold. Central-bank buying is one reason the pullback has stayed contained.
What happened
Gold traded at $4,218 an ounce on October 2, down 2.68% from a month earlier. China's central bank bought 20.2 tonnes in August, its largest monthly purchase since October 2023 and its 22nd straight month of buying.
- Gold traded at $4,218 an ounce on October 2, down 2.68% from a month earlier.
- China's central bank bought 20.2 tonnes of gold in August, its largest monthly purchase since October 2023 and its 22nd straight month of buying.
Why it matters
Gold pays no interest, so rising yields raise its opportunity cost. Steady official-sector buying has changed that relationship in recent years and is a slower-moving source of demand than investment flows.
What history shows
In our data gold closed at 4,156.80 on October 5, 2026, -7.14% over a month and -21.84% below its 52-week high.
After past Fed hikes, gold averaged +1.09% over 20 trading days across 37 decisions. After tariff escalation headlines it rose over 20 days in 100% of 8 cases.
Seasonal backdrop
October has no clear seasonal pattern for gold (average +0.13%, up in 50% of years). The traditional demand peak from the Indian festival and wedding season runs from October into December.
Markets in this insight
| Market | Last | Day | 1 month | Year to date | Oct average | Oct pattern |
|---|---|---|---|---|---|---|
| Gold | 4,187.10 | +0.73% | -6.47% | -3.55% | +0.13% | no clear pattern |
| Silver | 61.17 | +0.49% | -7.39% | -12.78% | +0.85% | weak |
Scenarios
Yields cap gold
Hot inflation data lifts real yields further and gold extends its pullback.
- Rising real yields
- Stronger dollar
Official demand and haven flows
Central-bank buying and geopolitical stress outweigh the yield headwind.
- New central-bank purchase data
- Escalation in the Gulf
What to watch
- October 14: September CPI
- Monthly central-bank reserve data