Gold dips to $4,013 on rate hike bets

October 23, 2026 (MLN): Gold prices edged lower on Friday and are on course for their sharpest weekly decline in more than four months, as high oil prices strengthened expectations that the Federal Reserve will keep interest rates elevated for longer, with investors awaiting next week’s Fed policy meeting.

Currently, spot gold is down 2.9% to $4,013.46 an ounce as of [11:38 am] PST, according to data reported by Mettis Global.

Oil jumped about 4% to a five-month high on Thursday after Houthi attacks on Saudi Arabia raised fears of fresh disruption to energy supplies.

Costly energy has reinforced bets on higher-for-longer US rates, raising the opportunity cost of holding gold, which pays no yield.

Attention has now shifted to the Fed’s October 27-28 meeting and next week’s Personal Consumption Expenditures (PCE) data, the central bank’s preferred inflation gauge as it targets 2% inflation.

Traders largely expect the Fed to leave rates unchanged next week, but still see an 80% chance of a hike in December.

 Separately, analysts at HSBC lowered their average 2026 price forecasts for platinum and palladium in a research note on Thursday, pointing to shifting market fundamentals and investor liquidation, according to CNBC.

Among other precious metals, spot silver fell 1% to $53.98 per ounce and platinum lost 0.1% to $1,568.58, while palladium held steady at $1,054.50.

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