Gold slips below US$4,000 an ounce on 23 Oct as oil surges
Gold was heading for its worst week since June, with traders putting the probability of a December US Federal Reserve rate rise at 78%.
- On October 23, gold prices fell below US$4,000 an ounce to a three-month low, marking the metal's steepest weekly decline in over four months.
- The price drop was driven by a surge in oil prices, which stoked inflation concerns and strengthened expectations that the US Federal Reserve would raise interest rates.
- A sell-off in technology stocks also contributed to gold's decline, as investors sold the metal to raise cash for margin calls on their equity holdings.
Global gold prices fell below US$4,000 an ounce on Friday, 23 October 2026, reaching a three-month low as rising energy costs stoked inflation concerns and strengthened expectations of higher US interest rates. Spot gold was trading 0.6% lower at US$3,998.49 an ounce at 2.27pm in New York, or 18:27 GMT, on 23 October. The metal had fallen below US$4,000 for the first time since mid-July.
Gold’s losses for the week had reached 4%, leaving the metal on course for its steepest weekly decline since June, more than four months earlier.
US gold futures for December delivery settled 1.3% lower at US$4,007.90 an ounce on 23 October.
Traders see October rate pause but December increase
Traders put the chance of the US Federal Reserve leaving interest rates unchanged at its 27–28 October meeting at 92%, and the probability of a December increase at 78%, according to CME Group’s FedWatch tool on 23 October.
US consumer and producer inflation figures released in mid-October exceeded expectations, strengthening the case for tighter monetary policy later in 2026.
The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure, is due for release on 29 October and could offer further clues to the US interest-rate outlook.
Brent rally intensifies inflation concerns
Brent crude reached its highest level in more than five months after Houthi attacks in Saudi Arabia heightened fears of further disruption to energy supplies.
Jim Wyckoff, a market analyst at American Gold Exchange, said mounting inflation concerns could prevent major central banks from easing monetary policy as quickly as they would like. “All that's working against the gold and silver market bulls at present,” he said.
Wyckoff said losses in technology stocks had also triggered margin calls for equity traders and investors, prompting them to sell gold and silver holdings to raise cash.
The S&P 500 and Nasdaq indexes touched five-week lows on 23 October as investors turned cautious following a sharp sell-off in stocks linked to artificial intelligence.
Lower prices boost Indian gold buying during Dussehra
Gold purchases in India increased during the week ending 23 October as lower prices encouraged buying during the major Dussehra festival and pushed premiums higher.
Physical gold demand in China, a major consumer, remained steady, although cautious shoppers continued to rein in jewellery spending.
Silver, palladium and platinum head for weekly losses
Silver, palladium and platinum were also heading for weekly declines on 23 October, with all three touching multi-month lows.
Spot silver fell 1% to US$53.97 an ounce, its lowest since November 2025, while palladium dropped 0.5% to US$1,048.31 an ounce, reaching its lowest since June 2025.
Spot platinum declined 0.9% to US$1,555.84 an ounce, its lowest level since July.
