YLG Bullion International Co., Ltd. issued its daily gold price outlook report for October 5, 2026, stating that on Friday prices swung in volatile trade, passing through the $4,220 level before falling sharply. It assessed that if a rebound cannot break above $4,226, caution remains warranted that the price decline is not yet over, with first support at $4,125-4,109. It recommended opening short positions again when a rebound fails to clear $4,192-4,226, and cutting losses on short positions if prices break above $4,226. Short positions should be bought back when prices hold above $4,125-4,109, but if they fall below $4,109, buying back should be delayed to the next support level. On key factors, gold closed down $41.3 on Friday even though it initially surged more than 1% after Nonfarm Payrolls rose by only 29,000, below expectations of 90,000, while the unemployment rate rose to 4.2%, prompting the market to reduce the odds that the Fed will raise rates in October. However, gold reversed to close down about 0.9% as U.S. bond yields rebounded, with the market still seeing the Fed as likely to raise rates again before year-end. Meanwhile, Bank of America warned of the risk that gold could fall below $4,000 in the fourth quarter due to high yields, a strong dollar, and a tight Fed policy stance.
Bank of America CorpBank of America warns gold could fall below $4,000 in Q4 due to high yields, strong dollar, and tight Fed policy.
Gold fell as U.S. bond yields rebounded and the market still expects another Fed rate hike before year-end, with BofA warning of further downside.
