Gold prices tumbled below $4,100 an ounce on Wednesday, October 14, 2026, as the US dollar strengthened to its highest level since April 2025. The decline came after stronger-than-expected US inflation data raised expectations of further interest rate hikes. Spot gold fell 1.6% to $4,091.06 an ounce, reaching a session low of $4,073.20. The US Consumer Price Index (CPI) rose 3.7% year over year in September, exceeding economist forecasts, while core CPI increased 0.3% month over month for the second consecutive month.
A stronger US dollar makes gold more expensive for international buyers, adding pressure on the precious metal. Chirag Sheth, global business head at Public Gold Bullion SG, expects gold to find support in the $3,800-$3,900 range. He anticipates a more sustained recovery in 2027, driven by central bank purchases and investment demand. Sheth views the recent decline as a potential opportunity for long-term investors, despite near-term volatility.
Gold-backed exchange-traded funds (ETFs) have seen increased inflows as prices approach $4,000 an ounce, with physical demand also picking up in some markets. However, Sheth predicts selling pressure around $4,200-$4,300 an ounce, potentially keeping prices range-bound in the short term. Elevated gold prices have encouraged consumers to sell recycled metal, boosting supply in several markets.
Jewellery demand is expected to remain subdued through 2026 and into 2027 due to high prices and competition from investment products. The near-term trajectory of gold will depend on price movements, the dollar, and US interest rate expectations. Over the longer term, sustained investment inflows and central bank buying could support prices, even as jewellery demand takes longer to recover.