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Gold climbed back above $4,000 on Monday, as softer oil prices eased some inflation concerns ahead of this week's Federal Reserve policy meeting that could shed light on the future interest rate path.
Spot gold rose 0.5 per cent to $4,014.49 per ounce by 0924 GMT after hitting $3,975 on Friday, its lowest level since July 20.
US gold futures for December delivery rose 0.5% to $4,028.40 per ounce.
"This 4,000 level is seen by some as a buying opportunity. So we should eventually see slightly stronger purchases stepping in, because it has also, from a technical perspective, helped very well in the past," said Giovanni Staunovo, a UBS analyst.
Gold is also finding support from lower oil prices today, Staunovo added, but upside remains limited by concerns that the Fed could continue hiking interest rates in December and again next year, even if it holds rates steady at this week's meeting.
Traders are pricing in a 9 per cent chance of an interest-rate hike on Wednesday, while expectations for a hike in December are at 80%, according to the CME's FedWatch Tool.
Higher rates increase the opportunity cost of holding non-yielding gold.
Brent crude futures were down 2 per cent at around $114 a barrel after surging to a six-month high last week.
Lower oil prices could ease some pressure on central banks ahead of the meetings this week. The European Central Bank and the Bank of Japan are also expected to hold rates steady despite inflation pressures, while leaving room for December hikes.
Investors also await the October 29 release of US Personal Consumption Expenditures (PCE) data, the gauge the Fed watches most closely as it targets 2 per cent inflation.
Among other metals, spot silver edged up 0.2 per cent to $53.99 per ounce, platinum slid 0.3 per cent to $1,547 per ounce and palladium fell 0.1 per cent to $1,043.47 per ounce.
Published on October 26, 2026
English (US) ·