Gold Heads for Worst Week Since June as Fed Rate Bets Weigh

Gold headed for its steepest weekly fall in more than four months on Friday, October 23, as rising oil prices and resilient US economic data strengthened expectations of prolonged high interest rates. Economic Times Markets reported that spot gold slipped 0.1% to $4,018.69 an ounce at 00:36 GMT, after touching its lowest level since August 3.

Bullion had lost 3.4% over the week so far, putting it on course for its largest weekly decline since June. US gold futures for December delivery fell 0.6% to $4,033.70 an ounce. These prices represent the report’s market snapshot, not live quotes.

Oil and employment data shape rate expectations

Oil rose about 4% on Thursday to a five-month high. The report attributed the move to concerns about energy-supply disruption following reported Houthi attacks in Saudi Arabia. More expensive energy can add to inflation pressure, reinforcing expectations that the Federal Reserve will maintain higher rates. That raises the opportunity cost of owning gold, which pays no interest.

New US unemployment-benefit claims fell to near a 57-year low last week, a development the report described as pointing to a modest improvement in October job growth.

Attention now turns to the Fed’s October 27–28 policy meeting and next week’s Personal Consumption Expenditures inflation data. The central bank targets inflation of 2%. According to the report, traders assigned roughly a 7% probability to a rate increase next week, compared with 81% for a December increase. Those figures reflect market expectations, not a policy decision.

India silver permits and wider metals weakness

India has issued permits to import about 6,500 metric tons of silver over the next six months to meet festive-season demand, according to four bullion dealers who received permits and spoke to Reuters, as cited in the report. The figure concerns authorised imports, not metal already delivered.

Spot silver edged down 0.1% to $54.46 an ounce, platinum declined 0.4% to $1,563.67 and palladium fell 0.5% to $1,051.00. All three were heading for weekly losses.

HSBC also lowered its average 2026 platinum and palladium price forecasts in a Thursday research note, citing changes in market fundamentals and investor liquidation. The bank nevertheless said both metals had scope to recover; revised forecast figures were not given in the report.