Gold trades at $4,185 on softer dollar, cheaper oil

October 12, 2026 (MLN): Gold was steady on Monday as a subdued US dollar and cheaper crude oil lifted demand, with market participants positioning ahead of this week’s American inflation figures that could shape the Federal Reserve’s next move on interest rates.

Currently, spot gold is down 0.2% to $4,185.06  an ounce as of [10:35 am] PST, according to data reported by Mettis Global.

With the greenback showing little movement, the metal remained reasonably priced for holders of other currencies.

While bullion is traditionally sought as protection against rising prices, elevated borrowing costs usually work against an asset that pays no yield.

Crude prices slipped after US President Donald Trump surprised markets on Sunday by declaring an immediate energy truce between Russia and Ukraine, raising hopes of larger Russian supplies, according to CNBC.

Ukrainian President Volodymyr Zelenskiy, however, said Kyiv was still waiting for the details of the arrangement.

Attention now turns to the US Consumer Price Index (CPI) due on Wednesday, followed by Producer Price Index (PPI) and retail sales numbers on Thursday.

CME’s FedWatch tool shows traders pricing a 17% likelihood of a rate increase in October, rising to 86% by December.

Meanwhile, US consumer confidence fell further in early October as living costs, pushed up by the Middle East conflict, dampened household views of the economy.

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