Gold prices are on track to record their sharpest weekly slump since June, dropping approximately 3.5% over the past five sessions. This marks the metal’s second consecutive weekly loss, driven primarily by surging crude oil prices that have intensified fears of persistent inflation and bolstered expectations that the US Federal Reserve will keep interest rates elevated for an extended period. US gold futures for December delivery dipped 0.5% to settle at $4,040.70 per ounce. Spot gold stood at $4,026.15 per ounce after touching an intraday low of $3,986.50, its weakest level since July 20. Other precious metals followed suit in a broad sell-off: Spot silver shed 1.2% to trade at $53.88 per ounce, marking its lowest valuation since November 2025. Spot platinum fell 0.8% to $1,557.03 per ounce, touching levels not seen since July. Spot palladium lost 0.3% to trade at $1,051.06 per ounce, reaching a low unseen since June 2025. Key Drivers and Market Expectations FactorCurrent StatusMarket ImpactCrude Oil SurgeBrent crude reached a five-month high following supply disruption risks in Saudi Arabia.Higher fuel costs elevate inflation expectations, dimming prospects for near-term interest rate cuts.Fed Rate ExpectationsCME FedWatch Tool prices in a 9% probability of an October rate increase, rising to 81% for December.Higher-for-longer yields weaken appetite for zero-yielding precious metals.Upcoming Macro TriggersUS Core PCE price index release scheduled for October 29; European Central Bank rate decision upcoming.Will guide market sentiment on monetary trajectories heading into late 2026. Asian Physical Demand Trends China: Physical bullion traded at a modest premium of $9 to $10 per ounce over the international benchmark. However, local retail jewelry uptake remains sluggish due to subdued consumer sentiment, especially among younger buyers. According to the World Gold Council, China logged its weakest first-half jewelry demand by volume since 2006. Hong Kong & Singapore: Hong Kong bullion saw pricing range between a $0.50 discount to a $2.50 premium, while Singapore dealers quoted physical gold from a $1 discount to a $2 premium. Japan: Japanese premiums held tight, swinging between a discount of $0.15 and a premium of $0.50. Post navigation Gold Rates Dip: Bustle Returns to Lucknow Bullion Market as Festive Buying Picks Up Titan Biotech Goes Ex-Bonus for 1:4 Issue as Stock Surges 4,700%+ in a Decade
