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Source: Newsmaker.id
Global gold prices remained relatively stable during Friday’s (October 16, 2026) trading session, following their largest daily gain in over two weeks the previous day. The precious metal traded at approximately US$4,160 per troy ounce, having surged 1.6% on Thursday. This rally was driven by an increased demand for safe-haven assets amid a global sell-off in technology stocks—particularly semiconductor companies—sparked by concerns regarding the outlook for artificial intelligence (AI) investments. Nevertheless, spot gold saw a slight correction of 0.3% to US$4,158.03 per troy ounce during morning trading.
The weakness in tech stocks prompted investors to shift capital into U.S. government bonds (Treasuries), causing yields to fall by roughly 12 to 15 basis points across various maturities. This decline in yields provided significant support for gold, as the precious metal does not offer interest or a fixed return. When bond yields fall, the opportunity cost of holding gold decreases, thereby enhancing its appeal as an investment instrument. This dynamic helped gold recover losses previously incurred due to pressure from U.S. inflation data.
Fundamentally, gold managed to rebound even though U.S. inflation data for September—released on Wednesday—came in higher than market expectations. The data had initially fueled speculation that the Federal Reserve might raise interest rates again at its October meeting. However, growing concerns over economic growth, exacerbated by the strain in the technology sector, led investors to seek out safer assets once more. Meanwhile, the Bloomberg Dollar Spot Index remained relatively stable following a 0.3% decline in the previous session, allowing gold to retain much of its recent gains.
Looking ahead, investor attention is focused on remarks from Federal Reserve Chair Kevin Warsh, to be delivered during an International Monetary Fund (IMF) meeting in Bangkok. Market participants will be closely monitoring the Fed’s views on inflation trends, the state of the U.S. economy, and potential shifts in the direction of interest rate policy. A hawkish tone could bolster the dollar and Treasury yields, thereby capping gains for gold. Conversely, should the Federal Reserve signal greater concern regarding the risk of an economic slowdown, gold could receive further support. In other precious metals markets, the price of silver fell 0.5% to US$57.13 per ounce, while platinum and palladium remained relatively stable.