Gold falls below $4,000
Gold prices extended their decline as rising oil prices fueled inflation concerns and strengthened expectations that the Federal Reserve (Fed) could raise interest rates again.
On Friday, October 30, spot gold fell 0.6% to $3,997.39 per ounce, while U.S. gold futures for December delivery declined 0.6% to $4,007.80. The precious metal is now on track to record its second consecutive monthly loss. Markets are pricing in approximately a 75% probability of a Fed rate hike in December, with expectations of higher interest rates intensifying selling pressure on gold.
Meanwhile, attacks targeting Saudi Arabia have heightened concerns over oil supplies, pushing energy prices higher and worsening the global inflation outlook. Oil prices are heading for their fourth consecutive monthly gain, while core inflation in Tokyo exceeding the 2% target has added to concerns about persistent price pressures. The decline in precious metals also extended to silver, platinum, and palladium. Silver dropped 2.1% to $51.27, platinum fell 1.9% to $1,458.85, and palladium declined 2% to $986.08.
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