Global gold prices weakened again during Monday’s trading session (October 26, 2026), with XAU/USD slipping to around US$3,989 per troy ounce, having previously breached the US$4,000 mark. The failure to sustain a rebound indicates that selling pressure remains strong ahead of this week’s Federal Reserve meeting.
The pressure on gold stems primarily from expectations that the Federal Reserve may still raise interest rates in December. Although the U.S. central bank is widely expected to keep rates unchanged at its October meeting, persistent inflationary pressures mean the market has not entirely ruled out further tightening before the end of the year.
U.S. economic data has also weighed on gold. The manufacturing PMI for October rose to 56, while the output price index reached its highest level since 2022. These conditions suggest that economic activity remains robust and price pressures have yet to fully subside, reinforcing the case for the Federal Reserve to maintain a tight monetary policy.
Interestingly, gold’s weakness comes even as oil prices begin to correct and Treasury yields retreat from their recent highs. This suggests that the pressure on gold is also driven by investor selling and position adjustments ahead of the FOMC decision, following a prior rebound that failed to attract sustained buying interest.
From a technical perspective, the US$4,000 level has once again become a critical area for gold. As long as XAU/USD fails to hold above this level, the price could face further downward pressure toward the US$3,975–US$3,950 range. Conversely, a recovery above the US$4,015–US$4,025 zone could open the door for a rebound—particularly if the Federal Reserve signals a more dovish policy stance. (CP)