Gold heads for steep weekly loss as oil prices fuel Fed rate concerns
GLD•Spot gold fell 3.5% this week and touched its lowest level since July 20 as elevated oil prices reinforced expectations that U.S. interest rates will stay higher for longer. Silver, platinum and palladium were also headed for weekly declines.
1. Gold extends weekly decline
Spot gold eased 0.2% to $4,016.27 an ounce on Friday after touching its lowest level since July 20. It was down 3.5% for the week, its steepest weekly decline in more than four months, while U.S. gold futures fell 0.7% to $4,030.40.
2. Oil and rate concerns
Oil prices rose about 4% on Thursday to a five-month high after Houthi attacks on Saudi Arabia raised concerns about energy supply disruptions. Higher energy prices have bolstered expectations of higher-for-longer Federal Reserve rates, increasing the opportunity cost of holding non-yielding bullion. Traders largely expect the Fed to leave rates unchanged at its October 27-28 meeting, while expectations for a December rate hike remain at 80%.
3. Other metals weaken
Silver fell 1% to $53.98 an ounce, platinum slipped 0.1% to $1,568.58 and palladium was steady at $1,054.50; all three were headed for weekly declines. HSBC cut its average 2026 platinum and palladium price forecasts, citing shifting market fundamentals and investor liquidation.
