Bangla Press Desk: Gold prices in the international market have fallen to their lowest level in over two weeks. Concerns regarding inflation have intensified due to rising fuel prices. Furthermore, this decline in the gold market comes ahead of the US Federal Reserve’s (Fed) monetary policy decision, expected next week.
On Thursday (October 22) at 3:02 PM Bangladesh time, the spot price of gold dropped by 1.4% to $4,081.89 per ounce. Meanwhile, the price of gold futures for December delivery in the US fell by 1.3% to $4,097.90 per ounce.
ANZ analyst Soni Kumari noted that gold prices could decline further, given the persistent, significant uncertainty in the energy market.
Following a fresh attack by the Houthi group in Saudi Arabia on Thursday, concerns have emerged regarding a potential escalation of the conflict and disruptions to crude oil supplies. This has driven oil prices in the international market up by more than $2 per barrel.
Gold is generally considered a hedge against inflation. However, as interest rates rise, the appeal of gold—a non-interest-bearing asset—diminishes. Consequently, the prospect of higher interest rates, coupled with mounting inflationary pressures, is exerting a negative impact on gold prices.
US consumer and producer inflation data released last week came in higher than expected, driven in part by rising energy costs. This has strengthened the case for a tighter monetary policy.
Nevertheless, most economists anticipate that the Federal Reserve may hold off on raising interest rates during its upcoming meeting on October 27–28.
According to a forecast by Goldman Sachs, the Fed could raise interest rates by another 25 basis points this December, which would push the upper limit of the target policy rate to a range of 4% to 4.25%. According to data from the CME FedWatch Tool, market participants estimate a 91% probability of an interest rate hike in December.
Meanwhile, the U.S. Personal Consumption Expenditures (PCE) price index—a key gauge of inflation monitored closely by the Federal Reserve—is scheduled for release on October 29. This data could provide fresh insights into the future trajectory of interest rates.
Hamad Hussain, an economist specializing in climate and commodities at Capital Economics, noted that the PCE data might indicate that inflation remains at a concerningly high level. This could prompt Federal Reserve officials to favor a tighter monetary policy, which would exert further downward pressure on gold prices.
Prices for silver, platinum, and palladium have also declined.
Along with gold, the prices of other precious metals have fallen. On Thursday, the spot price of silver dropped by 3.7% to $55.86 per ounce.
The price of platinum fell by 2.6% to $1,586.22 per ounce—its lowest level since July 2026.
Meanwhile, the price of palladium declined by 3.2% to $1,052 per ounce, having previously reached its lowest level since June 2025.
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