Gold prices dipped on Friday as rising oil costs stoked inflation concerns, reinforcing expectations of prolonged high interest rates. Spot gold fell 0.6% to $4,063.39 per ounce, though it remained up 4% for the week. U.S. gold futures for December delivery dropped 1% to $4,072.90. Analyst Ilya Spivak noted that crude oil's rebound was a key factor pressuring gold, as higher energy costs often lead to tighter monetary policy.
The market is still reacting to the U.S. midterm election results, keeping gold in a consolidation phase. Oil prices climbed over 1% but were on track for a weekly decline amid hopes of reduced tensions in Iran. Meanwhile, persistent Middle East supply worries continued to support crude prices, which can indirectly impact gold by influencing Fed rate decisions.
Asia's tech-heavy markets saw sharp declines due to regulatory fears and slowing AI investment, echoing the steep drops seen during the 2025 'Liberation Day' rout. Investors are now focused on the upcoming U.S. non-farm payrolls report and a speech by Fed Vice Chair Michelle Bowman. Traders currently see a 68% chance of a December rate hike, according to CME's FedWatch tool.
Goldman Sachs revised its year-end gold price forecast downward to $4,150 per ounce, citing the Fed's hawkish stance. Other metals showed mixed movements, with silver up 0.3% to $51.91, platinum gaining 0.4% to $1,523.63, and palladium down 0.2% to $1,029.22. All three metals were poised for weekly gains.