Gold eased on Friday and was set for its sharpest weekly decline in more than four months as surging oil prices and resilient US economic data fuelled expectations that the Federal Reserve would keep interest rates higher for longer, Reuters reported. Spot gold was down 0.1% at $4,018.69 per ounce by 0036 GMT, touching its lowest level since August 3, while US gold futures for December delivery dropped 0.6% to $4,033.70.

Source: Reuters

The metal fell about 3.4% for the week so far, recording its biggest weekly decline since June, Reuters said — yaani ek ounce sone ka daam $4,018.69 (lagbhag 10 gram par lagbhag $1,290), saaptaahik ghataav takreeban 3.4% jo June ke baad sabse tez hai; Bharat mein MCX par sone ka bhav ₹1,43,303 prati 10 gram par band hua.

Why gold fell while oil surged

The sell-off traces directly to the energy complex, where Brent crude surged on fresh Houthi attacks on Saudi Arabia and mounted concern over supply disruptions — stoking inflation fears that make rate cuts less likely. Higher interest rates raise the opportunity cost of holding non-yielding bullion, and a firmer dollar and Treasury yields add pressure. Although gold is traditionally an inflation hedge, higher rates dent its appeal because investors prefer yield-bearing assets, Reuters' report noted.

Source: Reuters via Kitco

Indian market reporting carried the same picture independently: spot gold traded nearly flat at about $4,019.90 with a 3.6% weekly slide — a second straight weekly decline — while spot silver fell 0.7% to $54.23 and MCX gold futures settled at ₹1,43,303 per 10 grams, 7Globe reported, citing market data and CME FedWatch pricing that put the probability of a December Fed rate hike as high as 80–88%.

Source: 7Globe

$4,018.69spot gold per ounce (lowest since Aug 3)
3.4%weekly decline — worst since June
₹1,43,303MCX gold per 10 grams (settlement)

Some intraday reports even showed spot gold slipping briefly below the $4,000 mark — its first visit there since late July — before steadying, underlining how fast the week's selling ran once the oil spike and Fed-hike repricing took hold.

Sources: Reuters, 'Gold heads for sharpest weekly decline in four months on Fed rate outlook', 23 October 2026; The Hindu Business Line market-live coverage carrying the Reuters report, 23 October 2026; 7Globe gold market reporting, 23 October 2026.