Gold dips to $4,013 on rate hike bets

Mettis Global reported that spot gold was down 2.9% at $4,013.46 an ounce on Friday, October 23, as markets priced in the possibility of US interest rates staying high for longer. The metal was heading for its steepest weekly fall in over four months, with traders focused on next week’s Federal Reserve meeting and inflation data.

Oil’s roughly 4% rise on Thursday, following Houthi attacks on Saudi Arabia, added to concerns about energy supply disruption and inflation. While traders mostly expect the Fed to keep rates unchanged next week, they see an 80% chance of a December increase; higher rates raise the cost of holding gold, which provides no yield. Silver fell 1% to $53.98 an ounce, platinum slipped 0.1% to $1,568.58, and palladium was unchanged at $1,054.50.