Gold falls below $4,000 for the first time since July: worst week since June

Spot gold fell as low as $3,975.23 an ounce on Friday, its lowest since mid-July, Reuters reports. In the evening it traded around $3,995, according to Investing.com. The December COMEX contract settled at $4,007.90, down 1.3% on the day, Reuters says. A week earlier, on 16 October, it closed at $4,181.10.

The main driver is oil. Brent climbed to a more than five-month high after Houthi attacks on sites in Saudi Arabia. Expensive oil pushes inflation up and makes it harder for central banks to cut rates. ING analysts noted that the gold market is now focused on oil and what it means for rates.

Rates matter for gold directly. The metal pays no interest, so when bonds and deposits pay more, holding gold is less attractive. CME FedWatch shows traders see a 92% chance the Fed holds at its 27-28 October meeting and a 78% chance of a hike in December.

The selloff in AI-linked stocks did not help either. The S&P 500 and Nasdaq touched five-week lows on Friday. Jim Wyckoff, an analyst at American Gold Exchange, told Reuters that falling stocks triggered margin calls for some investors, who sold gold and silver to meet them.

Other metals fell too. Silver dropped to $53.97 an ounce, its lowest since November 2025, and platinum to $1,555.84. On the other hand, gold demand in India picked up this week as lower prices during the Dussehra festival boosted purchases.

Confirmed facts

• Spot gold fell below $4,000 an ounce on Friday for the first time since mid-July and touched $3,975.23.^[2]
• Gold lost about 4% over the week, its worst week since June.^[2]
• December gold futures settled at $4,007.90, down 1.3% on the day.^[2]
• A week earlier, on 16 October, the December COMEX contract closed at $4,181.10.^[1]
• At about 22:05 GMT spot gold traded at $3,995.63 an ounce.^[3]
• Brent crude rose to a more than five-month high.^[2][3]
• CME FedWatch shows a 92% chance the Fed holds rates on 27-28 October and a 78% chance of a hike in December.^[2]
• PCE inflation data is due on 29 October.^[2]
• Silver fell to $53.97 an ounce, its lowest since November 2025.^[2]

Implications

• ConfirmedAnyone who bought gold above $4,000 in recent months is now at a loss.
• Our readingAs long as oil rises and markets expect a rate hike, gold will struggle to climb.
• Our readingGold did not act as a safe haven this week while stocks fell.

Still unknown

• Whether gold stays below $4,000 next week.
• What the Fed will signal on 28 October about December.

Who it affects

United States, Worldwide. Those who hold gold, silver or funds that track them and follow Fed rates

Sources

1. Yahoo Finance (COMEX data): Gold Dec 26 (GC=F) historical prices October 23, 2026 · official
2. Reuters: Gold set for steep weekly loss as rising oil prices bolster Fed rate hike bets October 23, 2026 · media
3. Investing.com: Gold set for steepest weekly drop in over four months as prices fall below $4,000 October 23, 2026 · media