Latest polls reveal President Trump's approval rating sank to a historic low of 32% as soaring energy costs made living expenses the top voter concern ahead of the midterms. Meanwhile, Yemeni government forces launched a lightning offensive to reclaim the Bab-el-Mandeb coastline, leaving spot gold consolidating weakly near $4,122 after early-session drops, with 30-minute technical indicators pointing to Strong Sell.

Weaker September employment figures pushed market expectations for an October Fed rate hike down to 24%, yet 10-year and 30-year US Treasury yields climbed to 24-year peaks. The firm dollar and high borrowing costs continue to cap bullion, with spot gold edging above $4,150 as markets await the September FOMC minutes.

Yemeni government forces launched a full-scale offensive to contest control of the Red Sea and Bab-el-Mandeb Strait, while Houthis targeted Saudi energy infrastructure. Although Saudi Arabia cut crude prices to Asia to offset soaring shipping costs, supply chain disruptions exacerbated persistent inflation fears, keeping spot gold under pressure near $4,138 with 30-minute technical indicators pointing to a Strong Sell.

The September employment report released by the US Bureau of Labor Statistics on October 2 was significantly weaker than expected, with non-farm payroll growth at only 29k, the unemployment rate rising to 4.2%, and wage pressures further easing. This report reduced the urgency for consecutive rate hikes in October, shifting the market's core focus back to inflation data.

Global sovereign bonds faced heavy liquidation with yields hitting multi-decade highs, while cooling inflation signs caused October rate hike expectations to plunge from 75% to 28%. Spot gold staged a violent oversold rebound ahead of the non-farm payrolls report, reclaiming $4,188 as short-term technical indicators flashed Strong Buy across the board.

Weaker-than-expected US August inflation data drove market expectations for a Federal Reserve October rate hike to plummet from 69% to 25%. After rebounding on Thursday, spot gold faced renewed pressure during the Asian session, retreating toward $4,147 as investors await the upcoming US September non-farm payrolls report.