Gold slides below $4,130 as dollar strength pressures bullion

Gold prices fell below $4,130 on Monday as a stronger dollar and rising Treasury yields pressured the precious metal. The move beneath the previous $4,130–$4,142 balance range confirms a shift in market sentiment following a rejection from the $4,183–$4,191 zone.

Macroeconomic headwinds are driving the decline, with investors pricing in an 82.8% probability that the Federal Reserve will hold rates steady in October. Expectations for a rate hike by December have climbed to approximately 90%, according to market data.

Personal Consumption Expenditures data as the next major

Inflation remains a central concern following September producer price index data, which showed a 1.3% month-on-month and 6.3% year-on-year increase. These figures support the case for continued restrictive monetary policy, with investors now focused on upcoming U.S. Personal Consumption Expenditures data as the next major inflation indicator.

Seller acceptance currently dominates the market, with price discovery shifting toward lower levels. For buyers to regain control, the asset must reclaim the $4,130–$4,142 range and establish sustained trade above $4,160. Without a recovery, the market is likely to continue its auction toward the $4,076–$4,084 value area.