Gold Slips as Higher Oil Prices Feed Fed Rate-Hike Bets
Gold edges lower in early Asian trade as DHF Capital's Bas Kooijman sees oil-driven inflation keeping hawkish Fed expectations alive.
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what happened
According to Market Talk, gold is trading lower in early Asian hours. Spot gold fell 0.2% to $4,117.90 an ounce.
Analyst Bas Kooijman of DHF Capital S.A. says the metal is likely to stay under pressure as costlier crude keeps inflation elevated and strengthens expectations of tighter monetary policy. Investors will watch the October Federal Reserve meeting for hints on the path of U.S. interest rates.
He notes the Fed is widely expected to hold rates steady, but "attention will likely remain on clues regarding another possible increase in December." Gold pays no interest, so higher rates typically reduce its appeal.
why it matters
Higher rates reduce the appeal of gold, which yields nothing, so any Fed signal about a December hike matters for the metal. In this scenario oil works through inflation expectations, so crude price moves feed directly into the rate outlook.
market impact
Gold: higher oil and expectations of tighter Fed policy pressure the metal
tags
instruments
sources
- Gold Falls Amid Pressure From Rising Crude Prices — Market Talk, 21 October 2026 at 00:34 UTC
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