Global gold prices remained relatively stable, hovering around US$4,000 per troy ounce during Friday’s trading, yet the metal remains on track for its second consecutive monthly decline. Spot gold edged down 0.2% to approximately US$4,014.44 per troy ounce, following a 1.1% drop in the previous session.
Downward pressure on gold intensified after U.S. inflation data showed a renewed increase. The Personal Consumption Expenditures (PCE) price index rose by 0.5% in September, marking its largest monthly gain since March. Persistent price pressures—driven largely by the energy sector—have strengthened the likelihood that the Federal Reserve will implement another interest rate hike before the end of the year.
Throughout October, gold has weakened by more than 3%. Concerns over a potential escalation of conflict in the Middle East have kept energy prices elevated, complicating the Federal Reserve’s efforts to curb inflation. Meanwhile, oil prices continue to be supported by speculation regarding potential new U.S. military operations against Iran following the midterm elections.
Gold also remains susceptible to volatility in global stock markets. Concerns surrounding the scale of corporate spending on artificial intelligence development have weighed on technology stocks. In some instances, the sell-off in equities has prompted investors to liquidate gold holdings to cover losses elsewhere, pushing the precious metal to its lowest level since July.
In the short term, the psychological threshold of US$4,000 remains a critical level for XAU/USD. While expectations of U.S. interest rate hikes and energy-driven inflation may cap any recovery in gold, rising geopolitical tensions and demand for safe-haven assets could provide support should global risks intensify.