Gold fell below $3,900 an ounce, hitting its lowest level since October 2025, as rising energy prices and persistent inflation worries reinforced expectations that US interest rates will stay higher for longer. Major central banks, including the Federal Reserve and the European Central Bank, left rates unchanged this week but stressed that the battle against inflation is not yet won, underscoring the risks stemming from surging energy costs.
US data released on Thursday showed inflation accelerating in September, with core prices also rising faster. This strengthened expectations that the Fed could deliver another rate hike in December.
Gold was further pressured by a sharp sell-off in technology stocks, amid mounting concerns over increasing AI-related spending. That slump may have prompted forced selling and margin calls across markets, adding to the downward pressure on bullion.
At the same time, oil prices advanced on fears of an escalation in the conflict in the Middle East, while physical gold demand in key Asian markets remained muted.
