Gold prices ticked lower on Wednesday after the previous session's climb of about 1%, Reuters reported, as higher oil prices stoked inflation fears while investors awaited the Federal Reserve's policy decision later in the day. Spot gold was down 0.3% at $4,045.29 per ounce by 0347 GMT, and US gold futures for December delivery dropped 0.4% to $4,059.00. Yaani, at about ₹95 to the dollar in early trade, that spot price is roughly ₹3.84 lakh per ounce.

Source: Reuters via The Hindu BusinessLine — Gold slips on oil-fuelled inflation fears ahead of Fed meeting

$4,045.29Spot gold per ounce at 0347 GMT Wednesday, down 0.3% — Reuters
$4,059.00US gold futures for December delivery, down 0.4%
~84%Market-implied chance of a Fed rate hike in December — CME FedWatch, via Reuters
1800 GMTWhen the Fed announces its policy decision on Wednesday

Oil prices rose on Wednesday after an attack on a refinery in Saudi Arabia, the world's biggest crude exporter, renewed concerns around risks to supply in the Middle East, Reuters reported. FXStreet reported WTI crude trading almost 1% higher near $100.50 after recovering from a two-day low of $98.83, and noted that Yemen's Iran-aligned Houthis said on Tuesday they had hit Saudi Arabia's biggest oil refinery with a missile — a claim Saudi authorities had not immediately confirmed, according to the Reuters report it cited.

Source: FXStreet, Oct 28, 2026 — Gold Price Forecast: XAU/USD drops as oil price rebounds, Fed's policy eyed

"Gold is moving based on the interest rate expectations and inflation risks because of higher energy prices," said Soni Kumari, an analyst at ANZ, in remarks reported by Reuters. "As a result, the Fed will remain cautious, which remains a short-term key headwind for gold." Elevated energy prices raise expectations that the Fed will keep interest rates higher for longer, increasing the opportunity cost of holding non-yielding bullion.

Source: Reuters via The Hindu BusinessLine — Gold slips on oil-fuelled inflation fears ahead of Fed meeting

Markets await the Fed's decision due at 1800 GMT, along with Thursday's Personal Consumption Expenditures data — the inflation gauge the central bank watches most closely as it targets a 2% inflation rate. Separately, analysts cut their 2026 gold price forecast for a second straight quarter in a Reuters poll, citing high Treasury yields, a strong US dollar and expectations that rates will stay higher for longer, while still expecting a recovery in 2027; the same polling found economists expect high inflation to persist in the global economy well into next year.

Source: Reuters via The Hindu BusinessLine — Gold slips on oil-fuelled inflation fears ahead of Fed meeting