Gold drops below $4,000 as inflation fears hit markets

Global gold prices fell below US$4,000 an ounce on Friday, October 23, marking a three-month low as rising energy costs fueled inflation concerns. Spot gold traded 0.6% lower at US$3,998.49, leaving the metal on pace for its steepest weekly decline since June with losses reaching 4%.

The drop follows stronger-than-expected US consumer and producer inflation data, which has increased the likelihood of higher interest rates later in 2026. Traders now assign a 78% probability to a Federal Reserve rate hike in December, while Brent crude reached a five-month high after Houthi attacks in Saudi Arabia disrupted energy supply expectations.

Investors also sold gold and silver holdings to cover margin calls triggered by a sharp sell-off in technology stocks, which pushed the S&P 500 and Nasdaq to five-week lows. Meanwhile, physical gold demand in India rose during the Dussehra festival as lower prices encouraged buying, while Chinese demand remained steady.

Read the full story at nationthailand.com.