Gold lost about 2.85% on Thursday, 22 October 2026, ending near $4,023 an ounce on the spot market, its lowest level since early August. US gold futures for December delivery settled 2.2% lower at $4,060.40, leaving the metal further below the record of $5,608 it reached in January.
So why such a steep drop in one day? The answer lies mostly in the energy market. Brent crude climbed to a five-month high, reviving fears that US inflation will stay sticky after last week's consumer and producer price figures came in hotter than forecast. That raises the chance of further interest-rate rises, and gold, which pays no yield, tends to lose its shine when rates go up.
What about the other precious metals? They fared even worse in the same session: silver slid 5.4% to about $54.84 an ounce, platinum dropped 3.7% to $1,570.85 and palladium gave up 2.7% to $1,057.83.
In Asian trading on Friday, 23 October, gold briefly slipped under the $4,000 mark to $3,986.54 before recovering to around $4,020. Analysts point to a dash for cash to explain how the metal fell even as the 10-year US Treasury yield dipped below 5%: investors appear to have sold gold to cover losses in technology shares.
Where does the market look next? The Federal Reserve meets on 27 and 28 October and is expected to leave rates unchanged, with the PCE inflation report due on 29 October. The CME FedWatch tool puts the odds of a December rate rise above 85%, and gold has shed about 5.9% of its value over the past month.
