Gold prices fell to their lowest level since mid-July on October 30, 2026, as investors weighed US economic data and inflation concerns. Spot gold was down 1% at $3,980.40 per ounce after touching its lowest since July 17.

Gold prices extend October decline

Spot gold was down 4.3% so far in October and headed for a second consecutive monthly decline. US gold futures for December delivery fell 1% to $3,991.10 per ounce.

Other precious metals also fell. Spot silver slid 3.6% to $50.50 per ounce, platinum dropped 3% to $1,443.69 and palladium declined 2.5% to $981.31. All three were on course for weekly and monthly losses.

Inflation and interest rates in focus

UBS analyst Giovanni Staunovo said stronger-than-expected US GDP data and higher oil prices were putting pressure on the Federal Reserve to raise interest rates further. Higher rates can make gold, which pays no interest, less attractive to investors.

The Bureau of Economic Analysis reported that the September PCE price index rose 0.5% from the previous month, up from 0.3% in August. The Fed had held rates steady during the week while pointing to inflation risks from higher energy costs.

Staunovo said gold could reach $5,000 or more in 2027 if the Fed eventually cuts rates and inflation ceases to be a problem. That is an analyst forecast, not a confirmed recovery.

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