Gold hits over two-week low as oil rally fuels inflation worries
GLD•Gold fell to its lowest level in more than two weeks, with spot prices down 1.4% to $4,081.89 an ounce, as rising oil prices heightened inflation concerns ahead of next week's Fed decision.
1. Oil rally pressures gold
Spot gold fell 1.4% to $4,081.89 per ounce by 0902 GMT on Thursday, its lowest level since October 7. U.S. gold futures for December delivery dropped 1.3% to $4,097.90. Oil prices rose more than $2 a barrel after Houthi attacks in Saudi Arabia raised concerns about wider conflict and crude supply disruptions.
2. Rate outlook in focus
Higher interest rates reduce the appeal of gold, which does not yield interest. Recent U.S. consumer and producer inflation data came in hotter than expected, and officials are still expected to hold rates at their October 27-28 meeting. Goldman Sachs expects one more 25-basis-point hike in December, while traders priced in a 91% likelihood of an increase. U.S. PCE data due October 29 could provide further clues on the rate outlook.
3. Other metals decline
Spot silver fell 3.7% to $55.86 per ounce, platinum slid 2.6% to $1,586.22, its lowest since July 2026, and palladium dropped 3.2% to $1,052.88 after reaching its lowest level since June 2025.
