Gold prices retreated slightly on October 21, 2026, as traders reacted to escalating tensions in the Middle East. The region's rising hostilities stoked inflation concerns, even as the Federal Reserve is widely expected to maintain steady interest rates in the near term. Bullion was trading at approximately $4,120 an ounce, following a 0.4% gain in the prior session that ended a three-day losing streak.
The decline in gold came amid heightened geopolitical risks, particularly after a US Department of State order for non-emergency American government employees and their families to leave Saudi Arabia. This move fueled fears of further escalation, especially after a drone strike on a Saudi Aramco field resulted in two fatalities. Oil prices also rose in response to these developments.