Gold prices stabilized on Monday, October 26, 2026, after a sharp decline the previous week. The precious metal edged higher as traders assessed the slim likelihood of a Federal Reserve interest rate hike at its upcoming meeting. Bullion rose as much as 0.7%, briefly surpassing $4,000 an ounce, following a more than 4% drop last week that pushed it to its lowest level since July.
The shift in gold's trajectory came amid broader market movements. Oil prices retreated from a six-month high as tensions between the US and Iran escalated, while global stocks rebounded after a selloff the prior week. The focus on the Fed's policy meeting has heightened, with traders weighing the potential impact on gold's performance.
Despite the recent volatility, gold's long-term outlook remains a topic of debate. Some analysts point to the metal's safe-haven appeal, while others caution about the effects of higher interest rates on non-yielding assets like bullion. The upcoming Fed meeting will likely provide further clarity on the direction of gold prices.