Gold drops over 1% as oil rally reinforces higher-for-longer rate outlook

SENSEX 73,085.95

 -623.74

NIFTY 22,561.00

 -250.35

CRUDEOIL 9,338.00

+ 130.00

GOLD 144,326.00

 -1,753.00

SILVER 204,227.00

 -4,941.00

SENSEX 73,085.95

 -623.74

NIFTY 22,561.00

 -250.35

NIFTY 22,561.00

 -250.35

CRUDEOIL 9,338.00

+ 130.00

CRUDEOIL 9,338.00

+ 130.00

GOLD 144,326.00

 -1,753.00

'; } document.getElementById("lgdv").innerHTML = htmlElements; } function numberformat(i) { return Number(parseFloat(i).toFixed(2)).toLocaleString('en', { minimumFractionDigits: 2 }) } async function gatherResponse(response) { const { headers } = response; const contentType = headers.get('content-type') || ''; if (contentType.includes('application/json')) { return await response.json() } return response.text(); } function getWidth() { if (Math.max(document.body.scrollWidth,document.documentElement.scrollWidth,document.body.offsetWidth,document.documentElement.offsetWidth,document.documentElement.clientWidth) > 991) { document.getElementById("mob").style.display = "none"; document.getElementById("lgdv").style.display = "block"; } else { document.getElementById("mob").style.display = "block"; document.getElementById("lgdv").style.display = "none"; } } getWidth(); THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.

Spot gold slid 1.1% to $4,094.90 ‌per ounce by 0333 GMT, hitting its lowest since ‌October ⁠14

By Reuters

Updated - October 22, 2026 at 09:51 AM. Highlights

• Gold hits its lowest since October 14
• FOMC interest-rate decision next week
• Traders see 90% chance of ​US rate hike in December
• Oil rises as US orders ‌diplomats to leave Saudi Arabia

Gold fell ⁠more than 1 per cent on Thursday as rising oil prices stoked inflation concerns and reinforced expectations that interest rates could stay higher for longer, while ‌investors awaited next week's Federal Reserve meeting for clues on the policy outlook.

Spot gold slid 1.1 per cent to $4,094.90 ‌per ounce by 0333 GMT, hitting its lowest since ‌October ⁠14. US gold futures for December delivery dropped 0.9 per cent ⁠to $4,111.40.

If oil prices continue to rise, inflation expectations could increase, raising the likelihood of higher interest rates over the longer term and weighing on ​gold, said Kelvin Wong, a ‌senior market analyst at OANDA.

Oil prices rose on Thursday as more attacks by the Houthis in Saudi Arabia prompted the US to order some diplomats and family members to ‌leave its missions in the Kingdom.

Though stubborn inflation, ​largely driven by high energy prices, has bolstered the case for tighter monetary policy, Fed policymakers are expected ⁠to remain patient for now.

Traders see just a 16 per cent chance of a rate hike at the Fed's October 27-28 policy ‌meeting next week, but are pricing in a 90 per cent likelihood of an increase in December, according to CME's FedWatch Tool.

Markets await next week's Personal Consumption Expenditures (PCE) data, a key gauge closely watched by the central bank as it targets a 2 per cent inflation rate.

Investors anticipate elevated interest rates at ‌both the short and long ends of the curve, reducing gold's appeal ​by increasing the opportunity cost of holding the non-yielding asset, Wong said.

Spot gold still targets the October 14 ⁠low of $4,073 per ounce, as suggested by a wedge. Resistance is ⁠at $4,135, a break above which could lead to a gain into the $4,150-$4,169 range, according to Reuters technical analyst ‌Wang Tao.

Among other metals, spot silver dropped 2.6 per cent to $56.44 per ounce, platinum slid 2.1 per cent to $1,594.25 and palladium fell 2.6 per cent ​to $1,059.05.

Published on October 22, 2026

THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.Sign into Unlock benefits!

• Access 10 free stories per month
• Get notified by email for early preview to new features, discounts & offers