Gold slides to $4,087 as oil-driven inflation worries weigh

October 22, 2026 (MLN): Gold extended losses on Thursday, as higher oil prices revived inflation fears and strengthened the case for interest rates staying high for an extended period, with the market focused on next week’s Federal Reserve meeting for direction on policy.

Currently, spot gold is down 0.81% to $4,087.18  an ounce as of [10:26 am] PST, according to data reported by Mettis Global.

Crude moved up after repeated Houthi strikes in Saudi Arabia pushed the US to direct some diplomats and their families to leave its missions in the Kingdom.

Sticky inflation, driven mainly by expensive energy, has supported arguments for a tighter stance, although Fed officials are expected to stay patient for the time being, according to Reuters.

CME’s FedWatch Tool shows traders assigning just a 16% probability to a rate increase at the Fed’s October 27-28 meeting, against a 90% probability of a hike in December.

Attention is also on next week’s Personal Consumption Expenditures (PCE) data, a key inflation measure for the central bank, which aims for 2% inflation.

Other precious metals also came under pressure, with spot silver down 2.6% at $56.44 per ounce, platinum off 2.1% at $1,594.25, and palladium 2.6% lower at $1,059.05.

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