23.10.2026 10:10
Spot gold fell below the psychological level of $4,000 in Asian markets, hitting its lowest level since July. The rise in oil prices increasing inflation concerns and expectations that the Fed will keep interest rates high for a long time pressured the precious metal. The ounce, which lost about 3.5 percent on a weekly basis, is heading for its sharpest weekly decline since June. Gram gold traded around 6,400 lira in the morning hours.
Gold, which is under selling pressure in global markets, has lost about 25 percent of its value since the peak it saw in January. Investors' eyes turned to the Fed meeting to be held next week.
DOWN 25 PERCENT FROM THE PEAK
Spot gold fell below $4,000 during the Asian session on Friday. Ounce gold had hit a record by rising above $5,400 in January. In the morning hours, ounce gold traded at $4,006.
GRAM GOLD AROUND 6,400 LIRA
In the domestic market, gram gold found buyers at 6,406 lira around 07:40. Quarter gold saw buying at 10,453 lira, while Republic gold was bought at 41,685 lira.
THE RISE IN OIL CREATED PRESSURE
Crude oil prices rose about 4 percent on Thursday to their highest level in the last 5 months. The Houthis' attacks on Saudi Arabia, which increased supply disruption concerns, were effective in the rise in oil. The increase in oil strengthened expectations that inflation would remain high.
Rising bond yields and a strong dollar also reduced the appeal of gold, which does not offer interest returns. OANDA Senior Market Analyst Kelvin Wong assessed that if the rise in oil continues, long-term interest rate expectations could be affected upward and this could create pressure on gold.
EYES ON THE FED'S RATE DECISION
The US Federal Reserve (Fed) will meet on October 27-28. While markets expect rates to be kept unchanged at this meeting, they assign about an 80 percent probability to a rate hike in December. Investors also focused on the Personal Consumption Expenditures (PCE) inflation data, which the Fed closely follows.
SILVER AND PLATINUM ALSO FELL
In other precious metals, spot silver fell 1 percent to $53.98 per ounce. Platinum traded at $1,568.58 with a 0.1 percent loss, while palladium traded flat at $1,054.50.
FORECAST REVISION FROM HSBC
HSBC lowered its 2026 average price forecasts for platinum and palladium. The bank cited changing market dynamics and investors closing their positions as the reason for its decision.