Solid Gold Berjangka – Global gold prices faced sharp downward pressure during trading on Friday (October 23, 2026), with spot gold (XAU/USD) sliding to around US$4,025 per troy ounce during the early Asian session. This decline pushed gold to its lowest level in over two months, extending the selling pressure across the precious metals market. Notably, this weakness in gold comes as geopolitical tensions in the Middle East intensify—a scenario that typically drives increased demand for safe-haven assets.
A surge in global oil prices has emerged as a primary factor weighing on gold. A deadly attack in Saudi Arabia has heightened concerns regarding the security of global energy supplies and fueled fears of rising inflation driven by higher fuel costs. The Houthi group in Yemen claimed responsibility for an attack on an airport in eastern Saudi Arabia, while a drone was reportedly intercepted while attempting to strike a Saudi Aramco processing facility at the Shaybah oil field. These tensions have left the market increasingly anxious about potential disruptions to energy distribution.
Rising oil prices could exacerbate inflationary pressure in the United States, increasing the likelihood that the Federal Reserve (The Fed) will maintain a tight monetary policy for longer. This serves as a negative sentiment for gold, as the precious metal does not yield interest. When interest rates are expected to remain high, interest-bearing assets—such as U.S. government bonds—become relatively more attractive, potentially dampening investor interest in holding gold.
Investor attention is now focused on the Federal Reserve’s policy meeting scheduled for October 27–28, 2026. According to the CME FedWatch Tool, there is a 92.8% probability that the Fed will keep interest rates unchanged at the October meeting. Nevertheless, the market continues to factor in the possibility of an interest rate hike in December. Federal Reserve official Kevin Warsh has yet to provide any definitive guidance regarding the October decision, though higher-than-expected U.S. inflation data remains a primary concern for the central bank.
Looking ahead, gold is expected to remain under pressure as long as oil prices stay high and expectations for a tightening of Federal Reserve policy persist. Should the selling pressure continue, the psychological level of US$4,000 could become the next focal point for market participants. Conversely, an easing of inflation concerns or the emergence of signals pointing toward a more dovish Federal Reserve policy could pave the way for a recovery. The central question now facing the market is whether gold can hold above the US$4,000 mark or if it will continue its decline leading up to next week’s U.S. interest rate decision.