Gold prices fell for the fourth consecutive day in the global market.

BanglaPress Desk: Gold prices in the global market have fallen for the fourth consecutive day. According to the news agency Reuters, rising oil prices have heightened concerns regarding inflation. Meanwhile, investors are closely watching the upcoming policy meeting of the U.S. Federal Reserve (Fed) scheduled for next week; these factors have collectively impacted the price of gold.
On Wednesday (October 21) at 9:15 AM Bangladesh time, the price of gold in the spot market dropped by 0.2 percent, bringing it to $4,118.18 per ounce. Simultaneously, in the U.S. market, gold futures for December delivery fell by 0.2 percent to $4,136.20 per ounce.
Bas Kooijman, CEO and asset manager at DHF Capital SA, noted that gold prices may remain under pressure as crude oil prices begin to climb again. This sustains inflationary pressure and reinforces expectations for a tighter monetary policy.
Global oil prices rose on Wednesday due to concerns regarding supply in the Middle East. Traders are anxious about risks to shipping in the Red Sea and the potential for attacks on Saudi Arabia’s energy infrastructure. On the other hand, Ilya Spivak, Head of Global Macro at Tastylive, suggests that gold prices could rebound if market expectations shift—specifically, if some of the currently anticipated interest rate hikes for next year are scaled back or removed from the outlook.
Most economists surveyed by Reuters believe that the Federal Reserve will refrain from raising interest rates this October, though the central bank may opt for a hike in December. While the persistence of inflation might necessitate stricter measures, policymakers may choose to observe the situation further before taking action. According to data from the CME FedWatch Tool, there is only a 16% probability that the Federal Reserve will raise interest rates at its upcoming meeting on October 27–28. However, nearly 90% of market participants anticipate a rate hike in December.
Generally, rising interest rates exert downward pressure on gold prices. This is because gold does not generate regular interest; consequently, the opportunity cost of holding gold increases compared to investing in interest-bearing assets.
Meanwhile, the US Dollar Index has stabilized following a recent decline, which has further dampened demand for gold. Additionally, investors are awaiting the release of the US Personal Consumption Expenditures (PCE) price index data next week. This is the Federal Reserve’s preferred gauge for measuring inflation, with the central bank maintaining an inflation target of 2%.Among other precious metals, the spot market price of silver fell by 0.9 percent on Wednesday to $57.44 per ounce. The price of platinum dropped by 0.6 percent to $1,638.61, while the price of palladium declined by 1.1 percent to $1,090.84.
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