Gold fell to a two-month low of $4,065.70 an ounce on Wednesday as US bond yields hit a two-decade high and Fed minutes kept another rate hike before year-end on the table. Silver dropped below $60 and platinum lost more than 4%.
At a glance
- December gold futures settled 1.1% lower at $4,140.70 an ounce on Wednesday.
- The US 10-year Treasury yield touched 5.36%, its highest in more than two decades.
- Platinum had the worst day of the precious metals, closing in New York 4.41% lower at $1,627.
Background
Gold pays no interest, so it usually loses appeal when bond yields rise and investors can earn more elsewhere. It is priced in dollars, so a stronger dollar makes it dearer for buyers using other currencies. The US Federal Reserve raised its benchmark rate in September for the first time in three years, to a range of 3.75% to 4.00%.
What happened
Spot gold slid to an intraday low of $4,065.70 an ounce on Wednesday, its weakest level in two months. It opened the Asian session at $4,159.62 and was trading at $4,108.40 late in New York. December gold futures settled 1.1% lower at $4,140.70.
Silver fell about twice as hard as gold in percentage terms. It dropped 2.55% to about $59.67 an ounce, slipping below $60. Platinum lost 4.41% to $1,627, after trading as low as $1,603 during the day.
Why it happened
The selling started in the bond market. The yield on the 10-year US Treasury note climbed to 5.36%, its highest in more than two decades. Higher yields raise the reward for holding bonds, which makes gold less attractive because it pays nothing.
The Fed minutes then added to the pressure. The record of the September meeting kept another rate increase before year-end on the table. Traders still expect the Fed to hold rates at its October 27-28 meeting, but they continue to price the risk of a December hike. The dollar index rose 0.4%, and Brent crude settled at $100.20 a barrel, keeping inflation worries alive.
What it means for India
Indian gold prices follow the international price and the rupee, so a fall in dollar gold usually feeds into cheaper local rates. The Reserve Bank of India raised its repo rate to 5.50% on the same day, its first hike since February 2023. Gold and silver prices have been a big driver of India's core inflation.
Our read
Outlook: bearish. Two-decade-high bond yields and a Fed that still talks about another hike leave little room for a non-yielding metal to rally. A softer dollar or falling yields would ease that pressure.
What to watch
- The Fed's decision at its October 27-28 meeting and any hint about December.
- Whether the 10-year Treasury yield stays above 5.3% after Wednesday's auction.
- Whether gold holds above the $4,065 low it touched on Wednesday.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-10-06: Gold slips to a two-month low just above $4,100 as the dollar and bond yields climb.
- 2026-10-07: Spot gold touches $4,065.70 as the Fed's September minutes keep a year-end hike on the table.
- 2026-10-27: The Fed's two-day policy meeting begins.
Inflation
Brent crude near $100 a barrel keeps inflation worries alive, which supports the case for higher US rates.
Interest Rates
Fed minutes kept a year-end hike on the table, and the 10-year yield touched 5.36%, raising the cost of holding gold.
Currency Impact
The dollar index rose 0.4%, making dollar-priced gold dearer for buyers using other currencies.
What could lift prices
- Traders still see the Fed holding rates at its October 27-28 meeting.
- A $39 billion 10-year note auction drew solid demand, which steadied bonds after the yield spike.
What could weigh on prices
- The Fed's September minutes kept another rate increase before year-end on the table.
- Long-term US yields are at their highest in more than two decades.
- The dollar index gained 0.4% on the day.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | Local gold rates track the global price, and the RBI raised its repo rate to 5.50% the same day. |
| United States | High | Fed policy and Treasury yields are the main forces moving gold this week. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Jewellery | Positive | Lower gold prices can help jewellery buyers who held back when prices were higher. |
| Gold Mining | Negative | A lower gold price cuts the revenue miners earn on every ounce sold. |
Who gains, who loses
- Bond investors: A 10-year Treasury yield above 5.3% pays far more than holding gold.
- Platinum holders: Platinum fell 4.41% in a single session, the steepest drop among precious metals.
- Recent gold buyers: Gold is trading at its lowest level in two months.
Other ways this could play out
- If the Fed signals no December hike, falling yields could help gold recover Wednesday's losses.
- If yields keep climbing past 5.36%, gold could break below Wednesday's $4,065.70 low.
Price risks
- A sharp drop in Treasury yields would undercut the bearish outlook.
- A sudden rise in safe-haven demand could revive buying at lower prices.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
United States
India