30.10.2026 10:31
Having lost nearly 4 percent in October and preparing to close its second consecutive month with a loss, ounce gold fell below $4,000 to $3,987 after strong growth and high inflation data from the US, while gram gold was pulled back to 6,417 lira.
Gold prices are heading toward a two-month losing streak, losing money for investors in October after September as well. Spot gold fell below the critical psychological level of $4,000 on the last trading day of the week, hitting $3,987. As monthly losses in gold prices approach 4%, heavy selling pressure in global markets has worried investors.
CURRENT STATUS IN SPOT AND GRAM GOLD
Rising oil prices and expectations that the US Federal Reserve (Fed) may continue raising interest rates led to a sharp decline in gold prices. With strengthening rate-hike signals, spot gold fell below critical psychological and technical support levels.
- Spot Gold: It fell to $3,987 on the last trading day of the week, suffering a value loss of nearly 4%. Spot gold was moving at $3,996 as of 07:54 Turkish time in the morning session.
- Gram Gold: It continues its downward trend under the influence of the decline in foreign markets. Gram gold, which saw 6,400 lira during the night hours, is trading at 6,417 lira as of 07:54 Turkish time in the morning session.
US MACROECONOMIC DATA PRESSURED MARKETS
Throughout October, high oil prices, hawkish expectations toward the Fed, a strengthening dollar index, rising US bond yields and economic data exceeding expectations continued to weigh on gold prices. During this process, significant outflows were recorded from gold-backed exchange-traded funds (ETFs).
US September Personal Consumption Expenditures (PCE) data were decisive in the selling pressure on gold. The PCE price index on the Fed's radar recorded its sharpest rise since March with a monthly increase of 0.5% in September. Annual PCE inflation reached 3.6%, while core PCE reached 3.1%, remaining above the Fed's 2% target.
On the other hand, the US economy grew 3.4% in the third quarter, surpassing the market expectation of 3.2%. Consumer spending and artificial intelligence investments stood out in this acceleration following 2.2% growth in the second quarter.
FED HELD RATES STEADY
The US Federal Reserve (Fed) kept its policy rate steady in the 3.75-4.00% range at its meeting on Wednesday, in line with expectations. The decision was taken by a 10-2 vote, while it was noteworthy that two members voted for a 25 basis point rate hike.
High inflation, strong economic growth and recovering consumer confidence data announced in the US shaped expectations regarding the Fed's monetary policy path. In line with the current picture, rate cuts moved away from the agenda, while the possibility of additional tightening strengthened again.