Gold steady, hovering just over a one week low as the dollar stabilized after recent losses and investors looked to next week’s Federal Reserve policy meeting for further direction.
A rally in oil prices and fears of escalating inflation kept a cap on prices, however, because of fears that the Fed will increase interest rates by the end of the year to combat inflation. Higher rates are typically bearish for gold, making the yellow metal a less attractive investment. Still, most investors don’t expect the Fed to raise rates this month but are instead looking toward the last scheduled policy meeting of the year, in December.
December gold fell 0.4% Tuesday to settle at $4,142.60 an ounce on Comex, and the front-month contract declined 0.9% in the first two days of the week. Bullion dropped 6.6% last month after rising 9.1% in August and gaining 1.7% in July. It is down 4.6% so far this year after rallying 64% in 2025. The December contract is currently up $13.40 (+0.32%) an ounce to $4146.00 and the DG spot price is $4137.80.
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 Oct. 29 in the morning, with the Fed’s policy decision coming in that afternoon.
Key U.S. inflation reports last week showed that the cost of goods are rising faster than economists had estimated, potentially setting the stage for an additional interest increases before the end of the year.
Inflation has climbed since the start of the Iran war in late February, as the subsequent curtailment of oil traffic through the Strait of Hormuz bolstered oil prices.
More than 85% 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% next week, with the rest anticipating a 25 basis point rate increase. The next Fed policy meeting is Oct. 28, six days before the U.S. midterm elections. The higher price of goods is being seen as a pivotal issue in the election. More than 87% 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 rose 1.3% Tuesday to settle at $58.00 an ounce on Comex, and the front-month contract gained 1.2% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver tumbled 9.6% in September after climbing 16% in August and sliding 3.6% in July. It is down 18% so far this year after rising 141% in 2025. The December contract is currently down $0.220 (-0.38%) an ounce to $57.780 and the DG spot price is $57.59.
Spot palladium lost 1.2% Tuesday to $1,112.50 an ounce and declined 0.9% so far this week. Palladium lost 11% last month after rallying 5.7% in August and adding 5.8% in July. It’s down 31% in 2026 after rising 74% last year. The current DG spot price is down $8.30 an ounce to $1103.50.
Spot platinum gained 0.6% Tuesday to $1,658.00 an ounce, and it rose 1.6% in the first two days of the week. Platinum fell 4.6% last month after increasing 7.5% in August and gaining 6.6% in July. Platinum is down 18% so far this year after increasing 122% in 2025. The DG spot price is currently down $7.90 an ounce to $1644.60.
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