Gold slips on oil-fuelled inflation fears ahead of Fed meeting
GLD•Spot gold fell 0.5% to $4,037.11 an ounce as higher oil prices stoked inflation fears ahead of the Federal Reserve’s policy decision. Analysts cut their 2026 gold price forecast for a second straight quarter, citing high Treasury yields, a strong U.S. dollar and expectations that rates will stay higher for longer.
1. Gold edges lower
Spot gold was down 0.5% at $4,037.11 per ounce by 0743 GMT on Wednesday, after rising about 1% in the previous session. U.S. gold futures for December delivery fell 0.6% to $4,051.30.
2. Inflation and rate outlook
Oil prices climbed more than 1% after an attack on a refinery in Saudi Arabia renewed supply concerns. Higher energy prices are raising expectations that the Fed will keep rates higher for longer, increasing the opportunity cost of holding non-yielding bullion. Traders largely expect rates to remain unchanged at the Fed’s decision, due at 1800 GMT, while pricing in about an 84% chance of a December rate hike. U.S. Personal Consumption Expenditures data is due Thursday.
3. Forecasts and other metals
Analysts cut their 2026 gold price forecast for a second straight quarter, but still expect a recovery in 2027. Spot silver fell 1% to $53.81 an ounce, platinum lost 0.6% to $1,530.49 and palladium dipped 0.2% to $1,024.15.
