Global gold prices rose during trading on Monday (October 19, 2026), driven by easing inflation concerns following a decline in global oil prices. This development has created a positive sentiment for gold ahead of next week’s Federal Reserve (Fed) monetary policy meeting, where the U.S. central bank is expected to keep its benchmark interest rate unchanged.
Spot gold climbed 0.2% to US$4,171.65 per troy ounce as of 08:53 GMT, while U.S. gold futures for December delivery rose 0.26% to US$4,191.90 per troy ounce. Notably, gold managed to remain in positive territory despite a stronger U.S. dollar, reflecting robust demand for safe-haven assets amid global economic uncertainty.
UBS analyst Giovanni Staunovo explained that the drop in oil prices has helped alleviate inflationary pressures—pressures that had previously fueled concerns about potential interest rate hikes by the Fed. Oil prices retreated from a five-month high after U.S. President Donald Trump eased sanctions and tariffs on Russia, paving the way for an increase in Russian energy exports to the global market.
The decline in oil prices has also helped soothe concerns following last week’s U.S. consumer price index (CPI) and producer price index (PPI) data, which came in high—partly due to a surge in gasoline prices. Investors are now turning their attention to the upcoming release of the Personal Consumption Expenditures (PCE) price index, a key inflation indicator used by the Fed to guide its monetary policy decisions.
According to the CME FedWatch Tool, as cited in the report, market participants estimate only a 15% probability of an interest rate hike in October, while the likelihood of a hike in December remains at 89%. This situation indicates that while short-term pressure on gold has begun to ease, the risk of a tight monetary policy continues to loom over price movements.
Meanwhile, other precious metals have also strengthened. The price of silver rose by 0.85% to US$57.49 per ounce, platinum climbed 1.27% to US$1,651.05, and palladium increased by 1.17% to US$1,125.44 per ounce.