Gold holds two-day slide as Fed signals one more hike, U.S. CPI in focus Roushni Nair Tue, October 13, 2026 at 10:13 PM EDT 3 min read GC=F +0.24% DX-Y.NYB -0.10% CL=F +0.72% SI=F -0.18% PL=F +0.05% Investing.com -- Gold prices held near $4,155 an ounce on Wednesday after Federal Reserve Bank of New York President John Williams indicated that another interest-rate hike may be appropriate this year, although his outlook for no further tightening in 2027 offered some support to bullion.
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Traders awaited U.S. inflation data for fresh clues on the central bank's policy path.
At 21:28 ET (01:28 GMT), XAU/USD fell marginally by 0.2% to $4,154.63 an ounce, while Gold Futures were effectively unchanged at $4,177.45. XAG/USD declined 0.3% to $58.9890 an ounce, while XPT/USD lost 0.7% to $1,654.96. XPD/USD fell 0.2% to $1,125.23. The US Dollar Index was little changed at 102.18.
Gold has declined for two consecutive sessions, losing around 0.8%, as a flare-up in Middle East attacks threatened further energy supply disruptions and raised concerns about persistent inflation.
Brent crude traded above $106 a barrel, increasing the risk that higher energy costs could complicate the inflation outlook and strengthen the case for tighter monetary policy.
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Williams said he considered one more interest-rate increase appropriate this year but did not expect further tightening in 2027. His comments helped gold pare losses, while U.S. Treasury yields edged lower, supporting the non-yielding precious metal.
Higher borrowing costs generally weigh on gold because it does not pay interest. The metal has fallen around a fifth from its levels since the U.S.-Iran war erupted in late February, as energy-driven inflation concerns and central bank tightening weighed on prices.
The Federal Reserve raised interest rates last month for the first time since 2023. Traders are now watching Wednesday's U.S. consumer price index report for September for further clues on the rate outlook.
Interest-rate swaps indicate a low probability of another increase at the October meeting, while markets are pricing in roughly a 90% chance of a hike in December.
Despite the recent pullback, Rick Kanda, managing director of The Gold Bullion Company, said gold's longer-term prospects should be considered in the context of its substantial gains over the past year.
Kanda noted that gold extended its strong performance into early 2026 after a record-breaking 2025, reaching an all-time high of about $5,560 an ounce in January. The metal subsequently retreated, trading around $4,185 an ounce on October 12, below several institutional year-end forecasts.
Kanda argued that the correction need not signal a deterioration in gold's longer-term outlook. Although the recent decline may concern some investors, prices remain elevated compared with historical levels, and consolidation following a sharp rally does not necessarily undermine the metal's longer-term prospects.
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