Gold gained early Monday as oil prices slipped, reducing inflationary fears and mitigated expectations of an upcoming U.S. interest rate hike.
Investors were mostly focused on the upcoming Federal Reserve policy meeting and signals on whether the central bank will increase rates before the end of the year. After this week’s meeting—at which the central bank is expected to keep rates unchanged—there is only one scheduled policy meeting left this year, in December. If the Fed raises rates, it’s considered bearish for gold, making the yellow metal a less attractive asset for investment.
December gold fell 4.1% last week to settle at $4,007.90 an ounce on Comex after the front-month contract declined 1.3% Friday. Bullion is down 4.3% this month after dropping 6.6% last month and rising 9.1% in August. It’s down 7.7% so far this year after rallying 64% in 2025. The December contract is currently up $17.70 (+0.44%) an ounce to $4025.60 and the DG spot price is $4008.20.
The decline in oil prices came after a jump to near six-month highs last week, adding to inflationary concerns.
In addition to the Fed policy meeting next week, investors are awaiting the release of the central bank’s favorite inflation measure, the personal consumption expenditures price index. The September data is due out Wednesday in the morning, with the Fed’s policy decision coming in that afternoon. Inflationary fears have climbed amid an oil-price rally since the start of the war in Iran.
More than 90% of the investors tracked by the CME FedWatch Tool are now betting that the Fed will keep interest rates unchanged at 3.75% to 4.00% this week, with the rest anticipating a 25 basis point rate increase. More than 76% of investors anticipate rates will be higher after the December meeting.
The Fed raised its benchmark rate by 25 basis points last month. It had previously kept rates unchanged this year after three previous rate cuts.
December silver futures fell 5.9% last week to settle at $53.95 an ounce on Comex after the front-month contract retreated 1.9% Friday. The most-active contract touched a record above $115 in January. Silver is down 11% this month after tumbling 9.6% in September and climbing 16% in August. It is down 24% so far this year after rising 141% in 2025. The December contract is currently down $0.064 (-0.12%) an ounce to $53.885 and the DG spot price is $53.74.
Spot palladium lost 6.3% last week to $1,052.00 an ounce after declining 1.4% Friday. Palladium is down 13% this month after losing 11% in September and rallying 5.7% in August. It’s down 35% in 2026 after rising 74% last year. Currently, the DG spot price is down $1.00 an ounce to $1057.50.
Spot platinum fell 4.4% last week to $1,560.40 an ounce after dropping 1.1% Friday. Platinum is down 8.5% this month after falling 4.6% in September and increasing 7.5% in August. Platinum is down 23% so far this year after increasing 122% in 2025. The DG spot price is currently down $28.50 an ounce to $1535.90.
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