Gold lost 3.5% over the week as higher oil rekindled concern about U.S. interest rates, with a Federal Reserve policy meeting Oct. 27-28 and an inflation release due Oct. 29 approaching.
Reuters’ Friday snapshot at 8:10 a.m. ET (12:10 UTC) listed spot gold at $4,023.95 an ounce. That quote left gold with a 3.5% weekly decline, the largest since June, extending its run of weekly losses to two.
U.S. consumer prices increased 0.6% in September from August and stood 3.7% above a year earlier. Gasoline rose 9.1% during September, while producer prices advanced 1.3% over the month.
Brent crude futures finished Thursday at $113.17 per barrel after a 4% gain. Hamad Hussain, a climate and commodities economist at Capital Economics, said the oil rise could keep real rates elevated for longer, which matters for gold because bullion pays no income while interest-bearing assets do. The move extends earlier EconoTimes coverage of gold’s losses amid oil-related rate concerns.
The Fed’s next policy meeting falls on Oct. 27-28. September data for personal consumption expenditures (PCE) prices is scheduled for release Oct. 29.
