Gold heads for steep weekly loss as oil prices fuel Fed rate concerns
GLD•Gold fell 3.6% this week and touched its lowest level since July 20, as elevated oil prices bolstered expectations that the Federal Reserve will keep interest rates higher for longer. Silver, platinum and palladium were also headed for weekly declines.
1. Oil fuels rate concerns
Spot gold was down 0.3% at $4,013.34 an ounce on Friday, after earlier touching its lowest level since July 20. It was on track for its steepest weekly loss in more than four months and its worst week since June. December U.S. gold futures fell 0.8% to $4,028.00.
2. Investors await Fed meeting
Oil prices rose after Houthi attacks in Saudi Arabia raised concerns about further energy supply disruptions. Higher energy prices have bolstered expectations of higher-for-longer Fed 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 of a December rate hike remain at 80%. Investors are also watching next week's Personal Consumption Expenditures data.
3. Other metals decline
HSBC cut its average 2026 platinum and palladium price forecasts, citing shifting market fundamentals and investor liquidation. Silver fell 1.2% to $53.85 an ounce, platinum dropped 0.7% to $1,559.76, and palladium was steady at $1,053.41; all three were headed for weekly declines.
