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Gold
Source: Newsmaker.id
Global gold prices saw a sharp decline during trading on Thursday (October 22, 2026), reaching their lowest level in over two weeks amid growing concerns regarding global inflation.
Spot gold (XAU/USD) fell 1.4% to US$4,081.89 per troy ounce as of 16:02 WIB (Western Indonesian Time), while U.S. gold futures for December delivery dropped 1.3% to US$4,097.90 per troy ounce. This weakness coincided with a surge in global oil prices—which rose by more than US$2 per barrel—following further attacks by the Houthi group in Saudi Arabia, fueling fears of disruptions to energy supplies from the Middle East. ANZ analyst Soni Kumari warned that gold prices could potentially fall further as long as uncertainty in the energy market persists.
Pressure on gold intensified after U.S. consumer price index (CPI) and producer price index (PPI) data from the previous week exceeded expectations, driven largely by rising energy costs. This has fueled speculation that the Federal Reserve will tighten monetary policy once again to curb inflation. Although the Fed is expected to keep interest rates unchanged at its October 27–28 meeting, Goldman Sachs projects a 25-basis-point hike in December, which would bring the benchmark interest rate range to 4.00%–4.25%. According to the CME FedWatch Tool—as cited in market reports—there is a 91% probability of an interest rate hike in December. Such expectations weigh on gold, as higher interest rates increase the appeal of interest-bearing assets compared to precious metals, which offer no yield. Investor attention is currently focused on the release of the United States Personal Consumption Expenditures (PCE) data on October 29, which serves as a key inflation indicator for the Federal Reserve. Capital Economics economist Hamad Hussain suggests that persistently high inflation could prompt a hawkish stance from the central bank, placing further pressure on gold. Other precious metals have also weakened: silver prices plummeted 3.7% to US$55.86 per ounce, platinum fell 2.6% to US$1,586.22, and palladium dropped 3.2% to US$1,052.88 per ounce. With inflationary pressures remaining unabated and expectations for higher interest rates on the rise, gold is expected to remain volatile leading up to the Federal Reserve’s decision and the publication of U.S. inflation data.
Newsmaker Conclusion
The decline of gold below the psychological level of US$4,100 indicates that bearish pressure is increasingly dominating the precious metals market. A surge in global oil prices, which heightens inflation risks, acts as a negative factor for gold by reinforcing expectations of interest rate hikes by the Federal Reserve.
If gold fails to recover and hold above US$4,100, selling pressure could potentially continue toward the US$4,050–US$4,000 per troy ounce range. Conversely, a cooling in oil prices and signals of a more accommodative policy from the Federal Reserve could open the door for a recovery.
Key market focus: The FOMC decision on October 27–28 and the PCE inflation data on October 29 are likely to determine whether gold can rebound or if it will continue its downward trend. (yds)
Source: Newsmaker.id