Gold prices fell by more than 1 per cent on Friday (today), as rising oil prices increased inflation concerns and expectations that US interest rates could remain high.
Spot gold dropped 1.1 per cent to $4,044.09 per ounce, while US gold futures for December delivery declined 1.5 per cent to $4,053.30 per ounce.
Gold remained on track for its strongest weekly performance since late August, despite the decline.
However, Oil prices increased by more than 1 per cent on Friday (today), raising concerns about higher inflation.
Although, Oil was still heading towards a weekly decline amid expectations of reduced tensions involving Iran following the US election results.
Ongoing concerns about oil supplies from the Middle East continued to support energy prices.
Ilya Spivak, head of global macro at Tastylive, said the recent recovery in crude oil prices was adding pressure to gold.
Higher energy costs can increase inflation and encourage the Federal Reserve to maintain higher interest rates.
Meanwhile, Asian technology stocks suffered heavy losses amid concerns about tighter regulations and slower investment in artificial intelligence.
The US stock market also experienced its sharpest decline since the tariff-related market turmoil of April 2025.
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Tim Waterer, chief market analyst at KCM Trade, said some investors were selling gold to raise cash and meet financial obligations during the stock market decline.
According to CME’s FedWatch tool, traders estimated a 68 per cent chance of a Federal Reserve interest rate increase in December.
Two Federal Reserve officials also supported gradual rate increases to control inflation.
Goldman Sachs reduced its gold price forecast for the end of 2026 from $4,650 to $4,150 per ounce, citing expectations of tighter US monetary policy.
Other precious metals also recorded losses.
Silver fell 0.5 per cent to $51.51 per ounce, while platinum declined 0.3 per cent to $1,512.83.
Palladium dropped 1.1 per cent to $1,020.10 per ounce.
Despite Friday’s losses, silver, platinum and palladium were all expected to finish the week with gains.
