Higher oil prices are keeping U.S. rate expectations in focus as gold heads for its steepest weekly fall since June, with a Friday rebound leaving bullion down 3.6% for the week, Reuters reported.
In Reuters' account, the oil rally is one force behind traders' view that borrowing costs may not ease soon. Higher rates can weigh on gold because it produces no income, while lower bond yields ease that disadvantage. Monte Safieddine, Capital.com’s head of market research, called the combination “a difficult cocktail for bullion.”
The Federal Reserve raised its target range to 3.75%-4.00% on Sept. 16. Reuters reported that traders broadly expected no change at the Fed’s Oct. 27-28 meeting, while futures pricing indicated an 80% chance of a December increase. Those figures describe market expectations, not a central bank decision.
U.S. Treasury daily par yield curve data showed the 10-year yield at 4.96% Thursday, down from 5.13% Wednesday. The Associated Press (AP) linked the drop to investors moving toward safer holdings after AI-linked stocks fell. AP also reported Brent crude at $113.17 a barrel during Thursday trading, after a 4% rise, and U.S. crude at $100.60 early Friday.
At 4:15 a.m. ET (08:15 UTC), Reuters put spot gold at $4,013.34 an ounce, down 0.3% for the day. FXStreet placed the session low near $3,986; Reuters said gold had reached its lowest level since July 20. FXStreet’s later report, published at 6:16 a.m. ET (10:16 UTC), listed $4,024.42 as a separate price snapshot.
The Bureau of Economic Analysis (BEA) lists Oct. 29 as the next release date for the personal consumption expenditures (PCE) price index, a data point Reuters also identified as a near-term market focus.
