Warning: Gold and Silver Prices Plunge
Jakarta, CNBC Indonesia — World gold prices fell by more than 1% in trading on Thursday (29 October 2026).
According to Refinitiv, gold closed Thursday at US$4,020.42 per troy ounce, down 1.15%. The decline ended a three-day winning streak.
Gold continued to weaken on Friday. At 06:52 WIB on 30 October, it was down 0.22% at US$4,011.47 per troy ounce.
The pressure came after data showed that US inflation remained high, reinforcing expectations that the Federal Reserve (the Fed) would raise interest rates again at the end of this year. This reduced the appeal of gold, which pays no interest.
David Meger, director of metals trading at High Ridge Futures, said the outlook for US inflation, which remains elevated above the Fed’s target, had fuelled speculation that the central bank would raise rates at its December meeting.
He said these expectations were the main factor weighing on gold prices. The latest inflation data also failed to ease market concerns.
“The outlook for inflation remaining persistently high and above the Fed’s target opens the door to speculation that the central bank will raise rates at its December meeting. This is the main factor weighing on gold prices at present, while today’s PCE report did nothing to ease those concerns,” Meger said, as quoted by Refinitiv.
US inflation, measured by the Personal Consumption Expenditures (PCE) price index, rose in September as petrol and various other goods became more expensive.
The US Bureau of Economic Analysis reported that the PCE index rose by 0.5% month on month in September, after increasing by 0.3% in August.
The odds of a Fed rate rise increase
On Wednesday, the Fed decided to leave its benchmark interest rate unchanged, as markets had expected. The central bank deferred any change to borrowing costs until after next week’s US midterm elections.
According to the CME Group’s FedWatch Tool, market participants now put the chance of a Fed rate rise in December at around 80%.
Year on year, US PCE inflation rose to 3.6% in September 2026, from 3.4% the previous month. Core PCE inflation also increased, to 3.1% from 3%.
Higher interest rates increase the opportunity cost of holding gold. Unlike interest-bearing instruments, gold generates no return, making it less attractive when rates rise.
Meger added that developments in energy markets would also be a key focus for investors. Energy prices are a source of inflation concern, so an escalation or easing of tensions in the Middle East could affect energy prices and the movement of precious metals.
“Any escalation or easing of tensions in the Middle East that drives energy prices up or down could have a significant impact on metal prices,” Meger said.
Investors are also watching the US election on 3 November and its potential effects on fiscal policy and broader market sentiment.
In Europe, European Central Bank (ECB) President Christine Lagarde will end her term on 7 February, according to a statement by the central bank. The ECB kept interest rates unchanged but warned of growing inflation risks from surging energy prices.