Gold eases on higher oil prices ahead of Fed decision
GLD•Spot gold fell 0.3% to $4,046.62 per ounce as higher oil prices fueled inflation concerns ahead of the Fed’s decision. Analysts lowered their 2026 gold price forecast for a second straight quarter.
1. Oil and Fed concerns
Spot gold edged 0.3% lower to $4,046.62 per ounce on Wednesday, after gaining about 1% in the previous session. US gold futures for December delivery fell 0.4% to $4,060.10. Oil prices rose more than 1% after an attack on a Saudi refinery renewed supply concerns.
2. Rates and forecasts
Higher energy prices bolstered expectations that interest rates could stay elevated, increasing the opportunity cost of holding non-yielding gold. The Fed was widely expected to leave its benchmark rate unchanged at 1800 GMT, while traders priced in an 89% probability of a December hike. Investors also awaited US PCE data due Thursday.
3. Outlook for metals
Analysts cut their 2026 gold price forecast for a second straight quarter, citing high Treasury yields, a strong US dollar and expectations that rates will remain higher for longer; they still expect a recovery in 2027. Analysts and traders also cut their 2026 platinum and palladium forecasts for a third straight quarter.
