Gold hits over two-month low as oil rally fuels inflation worries
GLD•Gold fell 1.9% to $4,060.37 an ounce, its lowest level since August 4, as rising oil prices heightened inflation concerns ahead of next week’s Federal Reserve decision. Silver, platinum and palladium also declined.
1. Gold prices fall
Spot gold slid 1.9% to $4,060.37 per ounce by 1134 GMT, its lowest level since August 4. U.S. gold futures for December delivery fell 1.8% to $4,075.70 per ounce. An ANZ analyst said prices could fall further amid uncertainty in energy markets.
2. Oil and rate concerns
Brent crude rose to its highest since May after Houthi attacks in Saudi Arabia raised concerns about wider conflict and disruptions to crude supplies. Recent U.S. consumer and producer inflation data came in hotter than expected, while the Federal Reserve is expected to hold rates at its October 27-28 meeting. Higher interest rates reduce the appeal of non-yielding gold.
3. Other metals decline
Goldman Sachs expects one more 25-basis-point rate hike in December, while traders are pricing in an 86% likelihood of an increase. U.S. Personal Consumption Expenditures data due October 29 could offer further clues on the rate outlook. Silver fell 3.9%, platinum dropped 2.9% to its lowest since July 29, and palladium declined 2.5% after reaching its lowest level since June 2025.
