Gold Rebounds as Falling Oil Prices Ease Inflation Concerns

Global gold prices rebounded on Wednesday (October 21, 2026), supported by a weaker US dollar and a retreat in oil prices after earlier gains. Spot gold (XAU/USD) rose approximately 0.43% to US$4,132 per troy ounce during evening trading, after fluctuating between US$4,106 and US$4,142. Meanwhile, front-month gold futures in New York settled 0.2% higher at US$4,130.50 per troy ounce. The recovery came as easing energy prices helped alleviate concerns over inflationary pressures, allowing gold to regain some ground following its recent decline.

Antonio Di Giacomo, an analyst at XS.com, noted that elevated oil prices have been a major factor weighing on gold, as they increase inflation risks and reinforce expectations of tighter monetary policy. Although inflation can boost demand for gold as a store of value and a hedge against rising prices, it can also encourage central banks to maintain higher interest rates for longer. This environment creates challenges for gold, which does not generate interest income, making yield-bearing assets such as government bonds relatively more attractive to investors.

Meanwhile, gold's recovery was not mirrored across the broader precious metals market. Silver futures settled 0.5% lower at US$57.422 per troy ounce, reflecting mixed investor sentiment toward precious metals. Market participants are now closely monitoring oil prices, US dollar movements, and the Federal Reserve's monetary policy outlook ahead of its October 27–28 meeting. If inflationary pressures ease and the dollar continues to weaken, gold could maintain its upward momentum. However, expectations of persistently high interest rates remain a significant obstacle to a sustained recovery in bullion prices.(mrv)

Source : Newsmaker.id