Staff Reporter 
Gold prices came under pressure in global markets amid rising oil prices and uncertainty over US interest rates. Following consecutive declines, the precious metal is heading for its steepest weekly loss in more than four months.
Investors remained cautious ahead of next week’s monetary policy meeting of the US Federal Reserve. At 2:15 pm Bangladesh time on Friday (October 23), spot gold fell 0.3% to $4,013.34 per ounce.
During the session, prices touched their lowest level since July 20. Gold has fallen 3.6% so far this week. If the trend continues, it would mark the metal’s biggest weekly decline since June.
Meanwhile, US gold futures for December delivery dropped 0.8% to $4,028 per ounce.
Rising Oil Prices Put Pressure on Gold
Market analysts said tensions in the Middle East and fears of disruptions to energy supplies had unsettled oil markets. Global oil prices rose on Friday amid concerns that Houthi attacks in Saudi Arabia could disrupt energy supplies from the region.
A prolonged period of high oil prices could fuel inflationary pressures, strengthening expectations that the Federal Reserve may keep interest rates elevated for longer.
Gold does not offer regular interest income. As a result, higher interest rates tend to make interest-bearing assets more attractive to investors, putting downward pressure on gold prices.
Monte Safieddine, head of market research at Capital.com, said investors were trying to keep gold prices above the psychologically important $4,000-per-ounce level.
A fall below that threshold could signal that expectations of interest-rate cuts were giving way to concerns about persistent inflation, higher bond yields and a stronger US dollar, he said.
According to Safieddine, further escalation of geopolitical tensions could push oil prices higher, increasing inflation concerns, raising bond yields and delaying interest-rate cuts. Such conditions would be unfavourable for gold.
Investors Await Fed Meeting and Inflation Data
Investors are now focused on the Federal Reserve’s monetary policy meeting scheduled for October 27–28. The US personal consumption expenditures (PCE) price index, due for release next week, is also expected to influence market sentiment.
The PCE index is a key inflation gauge monitored by the Federal Reserve, which has a long-term inflation target of 2%.
Most market participants expect the Fed to leave interest rates unchanged at next week’s meeting. However, market forecasts indicate an 80% probability of an interest-rate hike in December.
Meanwhile, HSBC lowered its average price forecasts for platinum and palladium in 2026 in a research report published on Thursday, citing changes in underlying market conditions and investors’ tendency to sell assets.
Silver and Platinum Prices Also Decline
Other precious metals also recorded losses on Friday. Spot silver fell 1.2% to $53.85 per ounce, while platinum declined 0.7% to $1,559.76 per ounce.
Palladium remained almost unchanged at $1,053.41 per ounce.
Gold, silver, platinum and palladium are all on track to record weekly losses.
Source: Reuters
