Gold prices continued their downward trend on Monday, October 19, 2026, as rising oil costs stoked inflation worries and complicated the Federal Reserve’s plans for future interest-rate hikes. Bullion was trading at approximately $4,135 an ounce, following a 0.6% drop in the previous session.
The surge in oil prices, which hovered near a five-month high, was driven by geopolitical tensions. Iran declared it had “no choice” but to assert control over the Strait of Hormuz, a critical energy chokepoint. Meanwhile, US lawmakers pushed back against President Donald Trump’s proposed diesel export deal with Russia, further tightening global energy markets.
The combination of higher energy costs and persistent inflation has clouded the outlook for monetary policy. Investors are now questioning whether the Federal Reserve will continue raising interest rates, a move that typically supports gold as a hedge against inflation. However, the metal’s recent decline suggests some uncertainty about its role in the current economic climate.