Gold Prices Drop Below $4,100 as Inflation Fears Fuel Hawkish Fed Outlook

Key Facts

1Gold prices fell to $4,059.78 per ounce, marking a nearly 2% decline from the daily open.

2Surging oil prices driven by Saudi supply risks have heightened inflation fears and expectations for higher interest rates.

Gold prices fell to $4,059.78 per ounce, marking a nearly 2% decline from the daily open. GoldSilver.com reported that the drop was driven by surging oil prices linked to supply risks in Saudi Arabia, which heightened inflation fears and expectations for higher interest rates.

The price action follows an energy-driven inflation shock that has reinforced expectations for the Federal Reserve to maintain a hawkish monetary policy. US labor market data released on October 22, 2026, showed initial jobless claims fell to 194,000, coming in below the forecasted 200,000 claims.

The Federal Reserve is scheduled to announce its interest rate decision on October 28, 2026, with market forecasts currently projecting the rate to remain at 4%.