Gold slips on oil-fuelled inflation fears ahead of Fed meeting
GLD•Spot gold fell 0.7% to $4,030.20 an ounce as higher oil prices stoked inflation concerns 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 dollar and expectations that rates will stay higher for longer.
1. Gold edges lower
Spot gold was down 0.7% at $4,030.20 per ounce on Wednesday, after rising about 1% in the previous session. U.S. gold futures for December delivery fell 0.8% to $4,043. Oil prices rose more than 1% after an attack on a Saudi refinery renewed supply concerns.
2. Rates and forecasts
Higher energy prices have raised expectations that the Fed will keep rates higher for longer, increasing the opportunity cost of holding non-yielding bullion. Traders largely expect the Fed to leave rates unchanged, while pricing in about an 84% chance of a December rate hike. Analysts also cut their 2026 gold price forecast for a second straight quarter, but still expect a recovery in 2027.
