Investors were cashing out gold positions to raise liquidity to fund margin calls in other asset investments as the equity markets grew increasingly concerned about AI investments. Investors continued to look to the Federal Reserve for signals on interest rates for further direction, though bets on a rate hike at the policy meeting next week continued to decline. Lower interest rates are typically bullish for gold, so a hold gave the yellow metal some support.
December gold fell 2.2% Thursday to settle at $4,060.40 an ounce on Comex, and the front-month contract declined 2.9% in the first four days of the week. Bullion is down 3% this month after dropping 6.6% last month and rising 9.1% in August. It’s down 6.5% so far this year after rallying 64% in 2025. The December contract is currently down $21.00 (-0.52%) an ounce to $4039.40 and the spot price is $4025.40.
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. Inflationary fears have climbed amid an oil-price rally since the start of the war in Iran.
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.
Over 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% 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 80% 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 4.7% Thursday to settle at $55.01 an ounce on Comex, and the front-month contract retreated 4% in the first four days of the week. The most-active contract touched a record above $115 in January. Silver is down 9.2% this month after tumbling 9.6% in September and climbing 16% in August. It is down 22% so far this year after rising 141% in 2025. The December contract is currently down $1.142 (-2.08%) an ounce to $53.865 and the DG spot price is $54.12.
Spot palladium lost 2.7% Thursday to $1,067.00 an ounce and declined 4.9% so far this week. Palladium is down 12% this month after losing 11% in September and rallying 5.7% in August. It’s down 34% in 2026 after rising 74% last year. Currently, the spot price is down $7.60 an ounce to $1056.00.
Spot platinum fell 3.4% Thursday to $1,578.10 an ounce and dropped 3.3% in the first four days of the week. Platinum is down 7.4% this month after falling 4.6% in September and increasing 7.5% in August. Platinum is down 22% so far this year after increasing 122% in 2025. The spot price is currently down $14.60 an ounce to $1564.30.
