Gold was down 3.6% for the week and headed for its steepest weekly decline in over four months as higher oil prices reinforced expectations for elevated interest rates. Spot gold eased 0.1% to $4,021.04 an ounce, after touching its lowest level since July 20.
Spot gold eased 0.1% to $4,021.04 per ounce by 0554 GMT on Friday, after earlier hitting its lowest level since July 20. It was down 3.6% for the week, its steepest weekly loss since June, while December U.S. gold futures fell 0.6% to $4,035.50.
Higher oil prices, following Houthi attacks in Saudi Arabia, reinforced expectations that the Federal Reserve will keep rates higher for longer, 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 of a December rate hike stood at 76%.
Silver, platinum and palladium were also headed for weekly declines. HSBC cut its average 2026 platinum and palladium price forecasts, citing shifting market fundamentals and investor liquidation.
