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Gold Rebounds Above $4,000 as Oil Retreats Ahead of Fed Decision
Gold prices recovered on October 26 as declining crude oil prices eased inflation concerns ahead of the Federal Reserve's policy meeting. Spot bullion climbed 0.6% to $4,020.60 per ounce, rebounding from its lowest level in more than three months.
By Paul Ploumis
Published: October 27, 2026
Market data: October 26, 2026
Key Points
- Spot Gold: ↑0.6% to $4,020.60/oz after touching $3,975 on Friday.
- Gold Futures: December contracts settled ↑0.8% at $4,038.40/oz.
- Oil Prices: Crude retreated from recent highs, easing some inflation concerns.
- Federal Reserve: An October 28 rate pause is widely expected, with investors watching for signals about December.
SEATTLE (Scrap Monster): Gold prices rose on Monday, October 26, recovering from a more than three-month low as easing crude oil prices reduced inflation concerns ahead of this week's U.S. Federal Reserve meeting.
Spot gold gained 0.6% to $4,020.60 per troy ounce by 2:09 p.m. EDT (1809 GMT), after falling to $3,975 on Friday, its lowest level since July 20.
U.S. gold futures for December delivery settled 0.8% higher at $4,038.40 per ounce.
Lower Oil Prices Support Gold's Recovery
Oil prices retreated after a sharp rally the previous week, although crude remained near six-month highs amid continuing uncertainty surrounding U.S.-Iran relations and potential supply disruptions.
The decline helped ease some inflation concerns, providing support for gold as investors returned to the market following Friday's selloff.
Bob Haberkorn, senior market strategist at StoneX, attributed the recovery partly to softer oil prices and bargain-hunting.
He said trading could remain subdued around the psychologically important $4,000 level until the Federal Reserve announces its decision.
Federal Reserve Decision and Inflation Data in Focus
The Federal Reserve is scheduled to announce its next interest-rate decision on Wednesday, October 28.
Following September's rate increase, investors widely expect policymakers to leave borrowing costs unchanged this week.
However, futures markets were pricing in approximately an 80% probability of another rate increase in December, according to the CME FedWatch Tool cited in Reuters' October 26 report.
Higher interest rates can weigh on gold because bullion does not generate interest income, making interest-bearing assets relatively more attractive.
Investors are also awaiting U.S. Personal Consumption Expenditures (PCE) inflation data on Thursday, October 29, for further indications of the monetary-policy outlook.
The November 3 U.S. midterm elections represent another consideration. OCBC analysts said the potential effects on fiscal policy, tariffs, geopolitical spending and policy uncertainty could influence Treasury yields, the dollar and gold.
ScrapMonster Edge: Gold's Rebound Faces an Important Fed Test
Monday's recovery brought gold back above $4,000, but the approaching Federal Reserve decision leaves interest-rate expectations central to the market outlook.
The Fed raised its benchmark rate by 25 basis points on September 16, establishing a target range of 3.75%–4.00%.
Markets broadly expect a pause on October 28, but that expectation differs from the possibility of another increase in December.
Why it matters: For precious-metal recyclers, refiners and buyers, changes in bullion prices affect the underlying metal value of gold-bearing scrap. Actual buying quotations also depend on purity, recovery, refining costs and commercial terms.
Silver and Palladium Gain as Platinum Declines
Other precious metals recorded mixed movements during Monday's session:
- Silver: ↑0.4% to $54.11/oz.
- Platinum: ↓1.1% to $1,533.65/oz, its lowest level since November 2025.
- Palladium: ↑0.5% to $1,049.09/oz.
Separately, Russian metals producer Nornickel warned that a planned major furnace overhaul could reduce production of palladium and other key metals during 2027–2028.
For gold, attention remains focused on the Federal Reserve's upcoming decision and inflation data as markets assess whether the recovery above $4,000 can be maintained.
Market reporting: Reuters, October 26, 2026.
Courtesy: www.reuters.com