NEW YORK — Gold pared earlier gains and closed lower on Tuesday, as a higher dollar and Treasury yields pressured the metal while investors awaited the outcome of the US midterm elections for fiscal policy clues, Reuters reported. Spot gold slipped 0.5 percent to $3,927.18 per ounce by 2:06 p.m. ET, after an earlier 1 percent decline took it to a session low of $3,893.31, and US gold futures for December delivery settled 0.7 percent lower at $3,940.40 per ounce.

Source: Reuters via Kitco

By the 5:00 p.m. ET close, spot gold stood at $3,930.33 an ounce, down $16.42, or 0.42 percent, from Monday's $3,946.74, according to the Ausecure market close note based on OANDA spot prices. Yaani, at about Rs 94.66 to the dollar, $3,930 an ounce works out to roughly Rs 3.72 lakh per troy ounce — about Rs 1.20 lakh per 10 grams — before local premiums and taxes. In late US trading Kitco News put spot gold near $3,924.10, down $21.60 or 0.55 percent, and spot silver near $49.45, down 2.13 percent.

Source: Ausecure market close

The data that moved the market: jobs and factories beat forecasts

Tuesday's US economic reports pointed to renewed strength in labour demand and manufacturing. September job openings (JOLTS) increased to 7.523 million from an upwardly revised 7.190 million in August, exceeding expectations near 7.15 million and reaching their highest level since May; layoffs declined to approximately 1.64 million and voluntary quits rose to 3.37 million, Kitco News reported. September factory orders also beat expectations, rising 1.8 percent after an upwardly revised 0.3 percent gain in August, against forecasts of about 1.2 percent, with orders 7.2 percent higher than a year earlier.

Source: Kitco News PM Report

"The dollar has been strengthening, and yields are going higher," pressuring gold, said Phillip Streible, chief market strategist at Blue Line Futures, quoted by Reuters. The greenback rose modestly as investors gauged uncertainty over a possible US-Iran deal and the outcome of the midterm elections, while Treasury yields also edged higher. Higher yields raise the opportunity cost of holding gold, which pays no interest, and a stronger dollar makes the metal dearer for buyers holding other currencies.

Source: Reuters via Kitco

Oil fell to a three-week low — and still could not lift gold

A decline in oil prices had eased some inflationary concerns and allowed bullion a short gaining spell, before prices fell again, Reuters reported; oil fell to a three-week low as the market weighed talks to end the wars in Ukraine and Iran against worries about additional supply disruptions from recent attacks in both conflicts. Kitco News put the settlements at $96.09 a barrel for Nymex WTI crude, down 0.4 percent, and $103.60 for Brent crude, down 1.1 percent, extending Monday's sharp losses. For gold, cheaper energy reduces one source of inflation pressure — but on Tuesday the jobs data and yields mattered more.

Source: Kitco News PM Report

The wider precious-metals complex fell with gold. Spot silver slipped 1.9 percent to $49.69 per ounce in the Reuters report, platinum fell 1.9 percent to $1,421.18 and palladium dropped 3.4 percent to $935.73. Silver remained more vulnerable to concerns about industrial activity, elevated financing costs and continued liquidation following October's sharp correction, Kitco News said.

Source: Reuters via Kitco

The demand backdrop: central banks bought 321 tonnes of gold in the third quarter, up 42 percent, even as the World Gold Council cut its 2026 investment-growth forecast from 400 tonnes to 200 tonnes and raised its central-bank buying estimate. Read the World Gold Council Q3 report story

Midterms, the dollar and what traders are watching

Attention on Tuesday was focused on the US elections, with polls and nonpartisan analysts favouring Democrats to wrest control of the House of Representatives from Republicans, while control of the Senate remained uncertain, Reuters reported. "A Democratic clean sweep could potentially put pressure on the US dollar by making it harder for the administration to pass law, including measures related to the debt ceiling. If the dollar falls, that's one way gold could potentially find some support," said Fawad Razaqzada, market analyst at Forex.com, quoted by Reuters. The first US polling places were scheduled to close at 6:00 p.m. EST, so Tuesday's metals close does not reflect the election results themselves.

Source: Reuters via Kitco