Gold dips to $4,119 on oil-led inflation fears

October 21, 2026 (MLN): Gold prices declined on Wednesday, as a rebound in crude oil rekindled inflation worries, while investors positioned cautiously ahead of the US Federal Reserve’s policy meeting next week.

Currently, spot gold is down 0.54% to $4,119.07  an ounce as of [10:14 am] PST, according to data reported by Mettis Global.

DHF Capital S.A. CEO and asset manager Bas Kooijman said the yellow metal may stay under pressure, as the return of crude to an upward path keeps inflationary pressures intact and strengthens expectations of a tighter monetary stance, according to CNBC.

Oil prices moved up on Wednesday amid supply concerns in the Middle East, with traders wary of shipping risks in the Red Sea and threats to energy infrastructure in Saudi Arabia.

On the policy front, CME’s FedWatch Tool showed the probability of a rate hike at the Fed’s October 27-28 meeting at as low as 16%, while the chance of a hike in December stood at 90%.

The US dollar index also steadied after recent losses, further limiting demand for bullion.

Market participants are also awaiting next week’s US Personal Consumption Expenditures data, the Fed’s preferred measure for tracking progress toward its 2% inflation target.

Among other precious metals, spot silver slid 0.9% to $57.44 per ounce, platinum dropped 0.6% to $1,638.61, and palladium slipped 1.1% to $1,090.84.

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