Gold prices edged higher after falling for three consecutive\nsessions.<\/p>\n
The rise was supported by a decline in US Treasury yields, while\ninvestors awaited next week\u2019s Federal Reserve meeting.<\/p>\n
According to Refinitiv, gold closed at US$4,140.38 per troy ounce on\nWednesday (21 October 2026), up 0.39%.<\/p>\n
The gain offered some relief after prices had fallen for three days\nin a row.<\/p>\n
Gold prices declined again on Thursday. At 6.27am Western Indonesian\nTime, the metal was down 0.34% at US$4,126.46 per troy ounce.<\/p>\n
The yield on the benchmark 10-year US Treasury bond fell for a second\nconsecutive session. This reduced the opportunity cost of holding gold,\nwhich pays no interest.<\/p>\n
Investors are now watching the Federal Reserve\u2019s policy meeting on\n27\u201328 October and next week\u2019s US Personal Consumption Expenditures (PCE)\nprice index report for clues about the future direction of interest\nrates.<\/p>\n
\u201cI think the market is currently pricing in one 25-basis-point rate\nrise this year, but it may not happen until December. The likelihood of\na rate rise in October has fallen quite significantly,\u201d Peter Grant,\nvice-president and senior metals strategist at Zaner Metals, said,\naccording to Refinitiv.<\/p>\n
\u201cI think gold prices will move within a limited range for the time\nbeing. However, the bias is still to the downside,\u201d he said.<\/p>\n
According to the CME FedWatch Tool, markets see an 88% probability\nthat the Federal Reserve will raise interest rates in December.<\/p>\n
Nearly all economists surveyed by Reuters expect the Federal Reserve\nto hold rates this month and raise them in December.<\/p>\n
Policymakers are choosing to proceed cautiously despite persistent\ninflation, which under normal circumstances could prompt tighter\nmonetary policy.<\/p>\n
Although gold is traditionally considered a hedge against inflation,\nhigher interest rates reduce its appeal because investors tend to favour\nassets that generate returns.<\/p>\n
\u201cI still believe gold is in a consolidation phase in the short term.\nSo whenever prices fall below US$4,100, they tend to find a floor as\nbuying interest emerges. But the potential for gains remains limited\nwhile the conflict in the Middle East remains a concern,\u201d said Giovanni\nStaunovo, an analyst at UBS.<\/p>\n
Meanwhile, oil prices were relatively steady as investors considered\nthe possibility of progress towards Russia\u2013Ukraine negotiations,\nalongside falling US oil inventories and the lack of dialogue between\nthe US and Iran.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/gold-struggles-to-rally-again-as-us-4-100-level-comes-into-focus-1792630264", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }