Gold slips below $4,000 on rising oil prices, firm US inflation data

October 30, 2026 (MLN): Gold prices fell on Friday as rising oil prices stoked inflation worries and stronger-than-expected US inflation data bolstered expectations of another interest rate increase by the Federal Reserve before the year ends.

Currently, spot gold is down 1.82% to $3,986.01 an ounce as of [12:13 pm] PST, according to data reported by Mettis Global.

US inflation picked up pace in September on higher costs of gasoline and other goods, reinforcing economists’ view that the Fed will raise rates in December, CNBC  reported.

According to the CME FedWatch Tool, traders now see roughly a 75% likelihood of a hike next month.

Higher interest rates raise the opportunity cost of holding gold, which pays no yield, and tend to dampen its appeal.

Oil prices, meanwhile, moved higher and were on course for a fourth consecutive monthly gain, the steepest since July, as supply worries mounted after Yemen’s Iran-aligned Houthis intensified attacks on Saudi Arabia.

In Japan, core inflation in Tokyo ran well above the Bank of Japan’s 2% target in October, data showed on Friday, pointing to building price pressures.

Among other precious metals, spot silver dropped 2.1% to $51.27 per ounce, platinum fell 1.9% to $1,458.85 and palladium lost 2% to $986.08. All three were heading for weekly and monthly losses.

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