Gold is holding above $4,100 as traders weigh softer expectations for a Federal Reserve rate hike against a stronger US dollar and elevated Treasury yields. The gold price rose 0.7% to $4,168.89 per ounce, keeping the precious metal close to a key support zone.
December US gold futures added 1% to $4,196.90. The market now has another major development to digest, as Russia prepares to increase its foreign exchange and gold purchases fivefold from October 7 through November 6.
The program carries an allocation of 279.42 billion rubles, with daily purchases averaging about 12.7 billion rubles. The move comes as traders continue to assess the impact of yields, currency strength, monetary policy and official-sector demand on gold.
However, Russia’s Ministry of Finance announced on October 5 that it would increase its combined foreign exchange and gold purchases fivefold during the October 7-November 6 period.
The planned allocation compares with about 55.6 billion rubles in the previous month, putting the new program at roughly $3.3 billion, versus around $650 million previously.
🚨 RUSSIA IS RAMPING UP GOLD PURCHASES Russia will increase its foreign exchange and gold purchases fivefold from October 7 through November 6, allocating 279 billion rubles with daily purchases of roughly 12.7 billion rubles. Another major sovereign buyer stepping up demand for gold. 🥇🔥
— WallStreet Gold (@WSBGold) October 6, 2026
The daily buying rate is also set to increase from roughly 2.1 billion rubles to 12.7 billion rubles. Based on the figures reported by market accounts, that takes the daily dollar equivalent from $29 million to $148 million. The purchases are being carried out under Russia’s budgetary rules, with additional oil and gas revenue directed into the National Welfare Fund.
For gold, the important distinction is that the 279.42 billion ruble allocation covers both foreign exchange and gold purchases, meaning the entire amount should not be treated as direct gold demand. However, a fivefold increase in the overall reserve-purchase program gives the market a larger potential source of official buying at a time when gold remains above $4,000.
However, the gold price is also facing pressure from financial conditions in the United States. The US dollar held onto Monday’s gains, which makes dollar-denominated gold more expensive for international buyers. US 10-year and 30-year Treasury yields also reached fresh 24-year highs on Monday, increasing the appeal of interest-bearing assets compared with gold, which does not pay a yield.
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Despite those headwinds, spot gold climbed to $4,168.89, marking a 0.7% daily increase, while December futures reached $4,196.90 after gaining 1%. Ole Hansen, head of commodity strategy at Saxo Bank, identified support just above $4,100, making that area an important level for traders to monitor.
Russia’s planned increase therefore arrives at an important point for the gold price. The market is balancing strong official-sector demand with a firm dollar and elevated Treasury yields, leaving the $4,100 area as a key reference point for the next move.
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