Jakarta, CNBC Indonesia \u2014 World gold prices fell by more than 1% in\ntrading on Thursday (29 October 2026).<\/p>\n
According to Refinitiv, gold closed Thursday at US$4,020.42 per troy\nounce, down 1.15%. The decline ended a three-day winning streak.<\/p>\n
Gold continued to weaken on Friday. At 06:52 WIB on 30 October, it\nwas down 0.22% at US$4,011.47 per troy ounce.<\/p>\n
The pressure came after data showed that US inflation remained high,\nreinforcing expectations that the Federal Reserve (the Fed) would raise\ninterest rates again at the end of this year. This reduced the appeal of\ngold, which pays no interest.<\/p>\n
David Meger, director of metals trading at High Ridge Futures, said\nthe outlook for US inflation, which remains elevated above the Fed\u2019s\ntarget, had fuelled speculation that the central bank would raise rates\nat its December meeting.<\/p>\n
He said these expectations were the main factor weighing on gold\nprices. The latest inflation data also failed to ease market\nconcerns.<\/p>\n
\u201cThe outlook for inflation remaining persistently high and above the\nFed\u2019s target opens the door to speculation that the central bank will\nraise rates at its December meeting. This is the main factor weighing on\ngold prices at present, while today\u2019s PCE report did nothing to ease\nthose concerns,\u201d Meger said, as quoted by Refinitiv.<\/p>\n
US inflation, measured by the Personal Consumption Expenditures (PCE)\nprice index, rose in September as petrol and various other goods became\nmore expensive.<\/p>\n
The US Bureau of Economic Analysis reported that the PCE index rose\nby 0.5% month on month in September, after increasing by 0.3% in\nAugust.<\/p>\n
The odds of a Fed rate rise increase<\/p>\n
On Wednesday, the Fed decided to leave its benchmark interest rate\nunchanged, as markets had expected. The central bank deferred any change\nto borrowing costs until after next week\u2019s US midterm elections.<\/p>\n
According to the CME Group\u2019s FedWatch Tool, market participants now\nput the chance of a Fed rate rise in December at around 80%.<\/p>\n
Year on year, US PCE inflation rose to 3.6% in September 2026, from\n3.4% the previous month. Core PCE inflation also increased, to 3.1% from\n3%.<\/p>\n
Higher interest rates increase the opportunity cost of holding gold.\nUnlike interest-bearing instruments, gold generates no return, making it\nless attractive when rates rise.<\/p>\n
Meger added that developments in energy markets would also be a key\nfocus for investors. Energy prices are a source of inflation concern, so\nan escalation or easing of tensions in the Middle East could affect\nenergy prices and the movement of precious metals.<\/p>\n
\u201cAny escalation or easing of tensions in the Middle East that drives\nenergy prices up or down could have a significant impact on metal\nprices,\u201d Meger said.<\/p>\n
Investors are also watching the US election on 3 November and its\npotential effects on fiscal policy and broader market sentiment.<\/p>\n
In Europe, European Central Bank (ECB) President Christine Lagarde\nwill end her term on 7 February, according to a statement by the central\nbank. The ECB kept interest rates unchanged but warned of growing\ninflation risks from surging energy prices.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/warning-gold-and-silver-prices-plunge-1793321439", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }