Global gold prices weakened again during trading on Wednesday (October 21, 2026), marking a fourth consecutive day of decline amid growing concerns over global inflation.
Spot gold (XAU/USD) fell 0.1% to US$4,121.27 per troy ounce as of 16:10 WIB (Western Indonesian Time), having touched its lowest level since October 15. Meanwhile, U.S. gold futures for December delivery slipped 0.1% to US$4,139.50 per troy ounce. This decline comes as investors grow increasingly cautious ahead of the Federal Reserve’s interest rate decision next week, while a surge in global oil prices has further intensified pressure on the U.S. inflation outlook.
The rise in Brent crude oil prices—remaining above US$110 per barrel—has been a primary factor weighing on gold. Geopolitical tensions in the Middle East, including threats to shipping lanes in the Strait of Hormuz and energy facilities in Saudi Arabia, have heightened the risk of disruptions to the global oil supply. Such conditions could drive up energy costs and sustain inflationary pressure for longer. Han Tan, Chief Market Analyst at Bybit, noted that gold remains in a downward trend—a pattern seen over the last two months—driven by expectations of further interest rate hikes by the Fed. Although gold is traditionally viewed as a hedge against inflation, high interest rates make the precious metal less attractive compared to yield-bearing assets.
Investor attention is now focused on the Federal Open Market Committee (FOMC) meeting scheduled for October 27–28, 2026. A majority of economists surveyed by Reuters anticipate that the Fed will hold interest rates steady at this meeting, before potentially raising them again in December. The market is currently pricing in a roughly 90% probability of an interest rate hike in December, with a potential increase of 25 basis points. Expectations of such monetary tightening continue to limit the upside for gold, as higher borrowing costs enhance the appeal of interest-bearing assets. Furthermore, investors are awaiting next week’s U.S. Personal Consumption Expenditures (PCE) data for clues regarding the trajectory of inflation and future monetary policy.
Selling pressure has also affected other precious metals: silver prices fell 1.3% to US$57.25 per ounce, platinum weakened 1.1% to US$1,630.11, and palladium dropped 2% to US$1,080.92 per ounce. This broad-based decline reflects growing investor caution regarding the outlook for the precious metals market amidst global economic uncertainty. Looking ahead, gold’s movement is expected to remain sensitive to fluctuations in oil prices, the U.S. dollar, and U.S. Treasury yields. Should inflationary pressures persist and the Federal Reserve maintain a hawkish monetary policy stance, gold could potentially retest the psychological support level of US$4,100 per troy ounce.
Solidnews Point of View
The four-day consecutive decline in gold prices suggests that the market is currently more concerned about the impact of inflation on Federal Reserve policy than it is focused on utilizing gold as a safe-haven asset. While the conflict in the Middle East has heightened global uncertainty, the resulting surge in oil prices has reinforced expectations for higher interest rates, thereby dampening the appeal of gold.
From a technical perspective, the US$4,100 level serves as a critical psychological support. Should this level be decisively breached, selling pressure could extend toward the US$4,050–US$4,000 range. Conversely, if gold manages to strengthen again and surpass US$4,150, the possibility of a recovery toward US$4,200 could emerge. This level serves as an analytical scenario rather than a definitive price target.
Conclusion: Gold remains under short-term bearish pressure. However, the Federal Reserve’s decision on October 27–28 and PCE inflation data could act as catalysts for a shift in market direction. If expectations for interest rate hikes begin to subside, gold may see a rebound. Conversely, a hawkish signal from the Fed could prolong the pressure on XAU/USD.