Business · Markets · 3 hrs ago
Gold slips as expectations of a Fed rate hike weigh on prices
Gold prices edged lower on Oct.
20 as investors considered the chance of another US interest rate rise this year.
The concern is that the Federal Reserve could raise rates in December, even though markets expected it to leave rates unchanged in October.
Gold does not pay interest, so higher rates can make it less attractive than investments that do.
Spot gold fell 0.3% to $4,125.90 an ounce, while US gold futures for December delivery fell 0.4% to $4,142.60.
The $4,000-per-ounce level is in focus as a support point for prices.
The account gives no further forecast or next step for gold prices.
Gold prices fell slightly on October 20 as expectations of another US Federal Reserve rate increase this year weighed on the metal.
The prospect of higher interest rates for longer reduced gold’s appeal because it does not pay interest.
Spot gold was down 0.3% at $4,125.90 per troy ounce at 2:05 p.m. Eastern time.
US December gold futures settled down 0.4% at $4,142.60 an ounce.
Markets expected the Fed to hold rates in October while assigning a higher likelihood to a December increase.
- Who
- Gold investors and traders. The US Federal Reserve’s rate outlook influenced prices.
- What
- Gold prices fell slightly amid expectations of another Fed rate increase this year.
- When
- October 20, 2026. Spot prices were reported at 2:05 p.m. Eastern time.
- Where
- International markets; US December gold futures were also traded.
- Why
- Expectations of higher rates for longer weakened gold’s appeal because it does not pay interest.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Spot gold
- Down 0.3% to $4,125.90 per troy ounce
- Spot price time
- 2:05 p.m. Eastern time on October 20
- US December gold futures
- Down 0.4% to $4,142.60 an ounce at settlement
- Fed rate outlook
- October hold expected; December increase possibility more heavily reflected