[REVISION HISTORY]

Gold prices fluctuate amid Fed policy and US economic data

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2026-10-28 05:19 UTC → 2026-10-30 01:23 UTC · added ~~removed~~

Gold prices fluctuate amid Fed ~~signals~~ policy and ~~inflation~~ US economic data

Gold prices have faced ongoing volatility driven by Federal Reserve policy signals and inflation data. While prices previously held above $4,000, they have fluctuated near the $4,170 level as investors weigh the impact of a strengthening U.S. dollar against geopolitical uncertainty and central bank demand. In mid-September 2026, the Federal Reserve raised interest rates by 25 basis points to a target range of ~~3.75%-4.00%,~~ 3.75% to 4.00%, its first hike since 2023. Although the move initially pressured bullion, gold prices recovered to trade between $4,370 and $4,400 per ounce, supported by retreating Treasury yields and declining oil prices. Despite this resilience, gold trended toward a 6% monthly loss by late September as investors awaited U.S. Personal Consumption Expenditures (PCE) data to gauge future rate hikes. By mid-to-late October, gold prices stabilized in the $4,160 range, facing resistance near $4,200. Market sentiment turned neutral as the VIX volatility index rose toward 20, influenced by concerns over AI-related infrastructure debt and drone attacks on Russian refineries. Recent shifts in central bank reserves have added complexity. While China and Poland continue to accumulate gold, Russia and Kazakhstan have reduced their gold holdings to meet budgetary and defense needs. Russia has reduced its holdings by approximately 62 tons since the start of the year, with much of that gold directed to Hong Kong. Kazakhstan plans to reduce the share of gold in its total reserves from 78% to 75% by the end of the year. In By late October, gold prices struggled near the $4,000 mark, hitting a three-month low of ~~$3,975.23 due to~~ $3,975.23. Following a ~~strengthening U.S. dollar and elevated Treasury yields.~~ period of stabilization above $4,000, December COMEX gold futures recently closed at $4,074.60 per ounce. However, prices fell by more than 1% on October 29, 2026, ending a three-day winning streak. This decline ~~was exacerbated by~~ followed robust U.S. economic indicators, including a ~~sell-off in artificial intelligence-related stocks, where investors liquidated bullion to cover losses. By late October, gold prices showed signs~~ third-quarter GDP growth of ~~recovery, stabilizing above~~ 3.4% and a monthly PCE inflation increase of 0.5% in September. Such data has reinforced expectations that the ~~$4,000 threshold.~~ Federal Reserve may raise interest rates during its December meeting, reducing the appeal of non-yielding assets.

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