Gold Slips as Investors Weigh Fed Rate Outlook
Traders cut the odds of an October hike to 16% as oil prices eased and attention shifted to the Fed’s policy decision, CME data showed.
- On Monday, bullion prices showed volatility, trading near $4,000 per ounce as investors assessed Federal Reserve rate expectations following comments by Fed chair Kevin Warsh. Gold steadied after falling more than 4% last week, marking its lowest level since July.
- Persistent inflationary pressures, driven by elevated energy prices, have reinforced expectations for further monetary tightening. Markets anticipate the Federal Reserve will skip rate hikes at its October 27–28 policy meeting, though traders price in a 90% chance of a December increase.
- Gold prices hit an intraday high of $4,155 per ounce this week, according to Adnan Agar, Director at Interactive Commodities. "Inflation and the Fed rates are the big stories that gold is fighting at the moment," said Bob Haberkorn, Senior Market Strategist at StoneX.
- Traders are closely monitoring upcoming US Personal Consumption Expenditures data, a key gauge for the central bank's 2% inflation target. MKS PAMP head of metals strategy Nicky Shiels notes bullion often struggles to maintain momentum during US trading sessions.
- Analysts suggest that if rate hikes "fall out of the forecast," it is "likely to send gold higher," Ilya Spivak, head of global macro at Tastylive, said.
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125 Articles
On the 26th, international gold prices fell to $4,019 per ounce as oil prices surged due to tensions in the Middle East and expectations of a U.S. interest rate hike coincided. This is the lowest level since last July, and the main cause is analyzed to be a shift in sentiment toward safe assets driven by inflationary pressures.
As selling pressure continues on gold prices, analysts are warning that new lows may be seen in the short term. Rising oil prices, inflation concerns, and the Fed's interest rate policy are weighing on gold, while critical resistance levels and upcoming US economic data are being closely watched for a potential recovery.
Although investors flee to secure facilities, the price of gold falls. The precious metal is actually considered a "safe haven". Two reasons explain the phenomenon, says Martin Müller.
Gold, silver face another test as oil surge puts Fed's policy decision in focus: Analysts
The precious metals, already battered by elevated bond yields and a stronger dollar, will look to the Federal Reserve's October 27-28 meeting and its chair's commentary for signals on whether interest rates could stay higher for longer.
Commodity markets were shaped by expectations that the Fed will continue cutting interest rates for some time. While precious metals saw significant declines, oil reached its highest level in four years. Among base metals, copper diverged negatively, while wheat and corn prices fell. The commodity market reacted to the US Federal Reserve's...
Gold Just Fell Below $4,000 After Its Worst Week in Five Months
The post Gold Just Fell Below $4,000 After Its Worst Week in Five Months appeared first on 24/7 Wall St.. Spot gold traded at $3,998.49 an ounce at 2:27 p.m. New York time on Friday, October 23, 2026. That was a three-month low and its first move below $4,000 since mid-July. By late U.S. trading, it sat at $3,995.81, down 0.70%, while December futures settled 1.3% lower at $4,007.90, just above the line. The break came as the S&P 500 and Nasdaq …
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