23.10.202614:46:18UTC+00Gold Slides Below $4,000

Gold prices fell below $4,000 an ounce on Friday, their lowest level since mid-July, leaving the metal down nearly 4% for the week. The decline came as rising oil prices reinforced expectations that US interest rates will stay higher for longer.

Brent crude climbed to a four-year high after Houthi attacks in Saudi Arabia intensified worries about further disruptions to energy supplies. At the same time, recent US data showed both consumer and producer inflation rising more than expected, driven largely by higher energy costs and fueling concerns about persistent inflationary pressures.

Even so, Federal Reserve officials are widely expected to keep interest rates unchanged at their October 27–28 meeting. According to CME’s FedWatch Tool, markets are currently assigning only about a 10% probability to a rate hike next week, compared with roughly 80% odds for an increase in December.

Investors are now looking ahead to US PCE inflation data due on October 29 for further indications of progress toward the Fed’s 2% inflation target.