Gold Remains Under Pressure

2026-10-21 13:07 By Joana Ferreira 1 min. read

Gold prices hovered around $4,130 an ounce on Wednesday after falling to their lowest level since October 15, as elevated oil prices fueled inflation concerns ahead of next week’s Federal Reserve policy meeting.

The metal has remained under pressure in recent weeks amid expectations that further rate hikes could be needed to contain inflation.

Although gold is traditionally viewed as an inflation hedge, its lack of yield makes it less attractive when interest rates rise.

Markets expect the Fed to hold rates steady on October 28, while pricing in a potential hike in December as policymakers assess persistent price pressures.

Recent hotter-than-expected consumer and producer price data have reinforced concerns that surging energy costs are keeping inflation elevated.

Meanwhile, UK inflation rose to an 11-month high of 3.5% in September, strengthening expectations that the Bank of England could raise interest rates as soon as November.



News Stream
Gold Slides Below $4,000
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