Gold Hits One-Year Low
Gold tumbled below $3,900 an ounce, touching its lowest level since October 2025, as rising energy prices and persistent inflation concerns reinforced expectations that US interest rates will remain elevated for longer. Major central banks, including the Federal Reserve and the European Central Bank, held rates steady this week but signaled that the fight against inflation is not yet over, highlighting the risks posed by surging energy costs. Meanwhile, US data released Thursday showed inflation accelerating in September, with core price growth also picking up, strengthening expectations of a potential Fed rate hike in December. Gold also came under pressure from a sharp sell-off in technology stocks, driven by concerns over rising AI-related spending, which may have triggered forced selling and margin calls across markets. At the same time, oil prices climbed on fears of an escalation in the Middle East conflict, while physical gold demand across key Asian markets remained subdued.
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Gold tumbled below $3,900 an ounce, touching its lowest level since October 2025, as rising energy prices and persistent inflation concerns reinforced expectations that US interest rates will remain elevated for longer. Major central banks, including the Federal Reserve and the European Central Bank, held rates steady this week but signaled that the fight against inflation is not yet over, highlighting the risks posed by surging energy costs. Meanwhile, US data released Thursday showed inflation accelerating in September, with core price growth also picking up, strengthening expectations of a potential Fed rate hike in December.
Gold also came under pressure from a sharp sell-off in technology stocks, driven by concerns over rising AI-related spending, which may have triggered forced selling and margin calls across markets. At the same time, oil prices climbed on fears of an escalation in the Middle East conflict, while physical gold demand across key Asian markets remained subdued.