Global gold prices remained relatively stable during Tuesday’s trading (October 27, 2026), ahead of the Federal Reserve’s (The Fed) interest rate decision scheduled for later this week. Spot gold (XAU/USD) edged down 0.2% to US$4,007.66 per troy ounce as of 07:47 Singapore time, following a 0.5% gain in the previous session. This movement suggests that investors remain cautious, particularly after gold faced intense selling pressure last Friday, which pushed it to its lowest level since mid-July.
Gold continues to face pressure driven by inflation concerns stemming from high global energy prices. Although global oil prices have weakened for the second consecutive day—amid renewed hopes following diplomatic efforts between the United States and Iran—the risk of rising energy costs has not entirely dissipated. Furthermore, gold was also affected by a wave of sell-offs in technology stocks last week; some investors appear to have liquidated their gold holdings to cover losses in other assets, weighing on the precious metal despite its reputation as a relatively safe-haven investment.
Regarding monetary policy, market attention is focused on the Fed’s meeting on October 27–28. Market participants currently estimate only a 10% probability of an interest rate hike at this meeting, making the decision to hold rates steady the primary expectation. Nevertheless, elevated energy prices keep alive the possibility that the Fed could raise rates again before the end of the year. This limits gold’s appeal, as the precious metal does not yield interest, whereas interest-bearing assets become relatively more attractive when rates remain high.
From a technical perspective, gold is at a critical juncture following a sharp decline over the past few weeks. Suki Cooper, Head of Global Commodities Research at Standard Chartered, noted that gold needs to establish a solid price floor to halt the selling pressure. According to him, the US$3,886 level serves as a crucial support area that must be maintained. If the price fails to find technical support, selling pressure could potentially intensify once again. Conversely, if gold manages to hold its ground around the US$4,000 mark, it could represent an initial step toward recovery—though it would not yet be sufficient to confirm a trend reversal.
Looking ahead, the direction of gold prices will largely depend on the Federal Reserve’s interest rate decisions and the Fed Chair’s remarks regarding the monetary policy outlook for the remainder of the year. Should the Fed signal a more dovish stance than the market anticipates, gold could find support from a weakening US dollar and declining bond yields. Conversely, a persistently hawkish stance could exert further downward pressure on prices. The primary question for investors now is whether the US$4,000 level can serve as a new foothold for gold, or if it will instead act as a ceiling before the next decline.