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Gold heads for steep weekly loss as oil prices fuel Fed rate concerns

Дата публикации: 23-10-2026 06:11:32

Gold eased on Friday, headed for its steepest weekly decline in over four months as elevated oil prices bolstered higher-for-longer interest rate expectations, while investors awaited next week’s Federal Reserve policy meet.
Spot gold eased 0.2% to $4,016.27 per ounce by 0351 GMT, paring losses slightly after touching its lowest level since July 20 earlier in the session.
The metal has fallen 3.5% so far this week, which is poised to be its worst since June.
US gold futures for December delivery dropped 0.7% to $4,030.40.
Speculators are trying to defend the key $4,000 level for gold because a clean break below would signal that the market has stopped pricing rate relief and started pricing sticky inflation, elevated yields, and a stronger dollar, said Monte Safieddine.
Oil prices rose about 4% to a five-month high on Thursday after Houthi attacks on Saudi Arabia stoked concerns of further disruption to energy supplies.
Elevated energy prices bolster expectations of higher-for-longer interest rates by the Fed, increasing the opportunity cost of holding non-yielding bullion.
“Any further escalation on the geopolitical front risks pushing oil even higher.
Higher oil is reviving inflation fears, lifting yields, and delaying Fed easing. That is a difficult cocktail for bullion,“ Safieddine added.
Focus has turned to the Fed’s October 27-28 policy meeting and next week’s Personal Consumption Expenditures (PCE) data, a closely watched gauge as it is the central bank’s preferred inflation measure as it targets a 2% inflation rate.
Traders are largely expecting the central bank to leave interest rates unchanged next week, but expectations for an interest rate hike in December remain at 80%.
Meanwhile, analysts at HSBC cut their average 2026 platinum and palladium price forecasts in a research note on Thursday, citing shifting market fundamentals and investor liquidation.
Among other metals, spot silver slid 1% to $53.98 per ounce, platinum fell 0.1% to $1,568.58 and palladium steadied at $1,054.50.
All three metals were headed for weekly declines.


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Gold eased on Friday, headed for its steepest weekly decline in over four months as elevated oil prices bolstered higher-for-longer interest rate expectations, while investors awaited next week’s Federal Reserve policy meet.

Spot gold eased 0.2% to $4,016.27 per ounce by 0351 GMT, paring losses slightly after touching its lowest level since July 20 earlier in the session.

The metal has fallen 3.5% so far this week, which is poised to be its worst since June.

US gold futures for December delivery dropped 0.7% to $4,030.40.

Speculators are trying to defend the key $4,000 level for gold because a clean break below would signal that the market has stopped pricing rate relief and started pricing sticky inflation, elevated yields, and a stronger dollar, said Monte Safieddine.

Oil prices rose about 4% to a five-month high on Thursday after Houthi attacks on Saudi Arabia stoked concerns of further disruption to energy supplies.

Elevated energy prices bolster expectations of higher-for-longer interest rates by the Fed, increasing the opportunity cost of holding non-yielding bullion.

“Any further escalation on the geopolitical front risks pushing oil even higher.

Higher oil is reviving inflation fears, lifting yields, and delaying Fed easing. That is a difficult cocktail for bullion,“ Safieddine added.

Focus has turned to the Fed’s October 27-28 policy meeting and next week’s Personal Consumption Expenditures (PCE) data, a closely watched gauge as it is the central bank’s preferred inflation measure as it targets a 2% inflation rate.

Traders are largely expecting the central bank to leave interest rates unchanged next week, but expectations for an interest rate hike in December remain at 80%.

Meanwhile, analysts at HSBC cut their average 2026 platinum and palladium price forecasts in a research note on Thursday, citing shifting market fundamentals and investor liquidation.

Among other metals, spot silver slid 1% to $53.98 per ounce, platinum fell 0.1% to $1,568.58 and palladium steadied at $1,054.50.

All three metals were headed for weekly declines.

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