Gold prices slipped again on Friday, October 23, putting the precious metal on course for its steepest weekly fall in more than four months. Spot gold traded near $4,021 an ounce, close to its lowest level since July 20, while United States gold futures for December delivery eased to about $4,035 an ounce. The metal has lost roughly three and a half percent this week, its worst week since June.
The retreat has been driven less by gold itself than by energy markets and interest-rate expectations. Oil prices jumped about four percent to a five-month high on Thursday after attacks by Houthi fighters on targets in Saudi Arabia raised fears of further disruption to energy supplies from the Middle East. Dear oil lifts transport and production costs, reviving worries that inflation will stay high for longer.
FAKTA: Gold prices at a glance
- Spot gold near $4,021 an ounce; lowest level since July 20.
- United States December gold futures near $4,035 an ounce.
- Weekly loss around 3.5 percent, the worst since June.
- Oil up about four percent to a five-month high.
- Federal Reserve meeting on October 27–28; new inflation data due next week.
- Silver, platinum and palladium also heading for weekly losses.
Why gold prices are falling
Gold is traditionally seen as a shelter in uncertain times, but it pays no interest. When interest rates and bond yields stay high, holding gold becomes more costly compared with interest-bearing assets such as government bonds. A stronger dollar has the same effect, making gold more expensive for buyers using other currencies.
That chain is now weighing on the market. Higher oil prices have strengthened the case for the Federal Reserve to keep rates higher for longer, pushing up yields and the dollar. Traders still largely expect rates to stay unchanged at the October 27–28 meeting, but market pricing points to a roughly 80 percent chance of a rate increase in December.
The $4,000 level in focus
Market watchers are now focused on the $4,000-an-ounce mark. Monte Safieddine, head of market research at Capital.com, said traders are trying to defend that level because a sustained break below it would signal that markets have stopped expecting interest-rate relief and have started pricing in stubborn inflation, higher yields and a stronger dollar.
The pressure has spread across precious metals. Silver, platinum and palladium all moved lower on Friday, and analysts at HSBC have cut their average 2026 price forecasts for platinum and palladium.
What comes next for gold prices
Attention now turns to the Federal Reserve meeting on October 27–28 and to the Personal Consumption Expenditures inflation data due next week. That index is the central bank’s preferred measure of inflation as it works toward its two percent target, and it will help shape expectations for December.
For now, gold prices look tied to whether oil stays near its recent highs and whether inflation data keeps rates higher for longer. More international business coverage is available on Watan News.
