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Gold prices rise as oil and dollar weaken
Published : Tuesday, 13 October, 2026 at 5:04 PM
Observer Online Report
Gold prices edged higher in the global market on Tuesday as oil prices and the US dollar weakened, while investors awaited key US inflation data for clues about the Federal Reserve’s monetary policy outlook.
Spot gold rose 0.4 per cent to $4,186.91 an ounce by 2:58PM Bangladesh time, while US gold futures for December delivery gained 0.5 per cent to $4,211.30 an ounce.
Ole Hansen, head of commodity strategy at Saxo Bank, said several key US economic indicators were due this week. The Consumer Price Index (CPI) for September is scheduled for release on Wednesday, followed by the Producer Price Index (PPI) and retail sales data on Thursday. Federal Reserve Chair Kevin Warsh is scheduled to speak at the International Monetary Fund (IMF) on Friday.
Hansen said the data and remarks could influence bond yields, the dollar and the direction of precious metal markets in the short term. He also noted continued buying interest in gold.
Oil prices fell on Tuesday, putting the energy market on track for its first weekly decline in nearly a week. Meanwhile, the US dollar retreated from an 18-month high, while the yield on 10-year US Treasury bonds fell to its lowest level since October 2.
Lower bond yields reduce the opportunity cost of holding non-yielding assets such as gold, potentially boosting investor demand. A weaker dollar also supports gold prices, as the metal is traded internationally in the US currency.
Meanwhile, Beth Hammack, president of the Federal Reserve Bank of Cleveland, said the Fed would need to move towards a tighter monetary policy relatively quickly to bring inflation under control.
Market expectations indicate a 17 per cent probability of a Fed rate hike this month, while traders are pricing in an 87 per cent chance of an increase in December, according to the CME FedWatch tool.
Giovanni Staunovo, an analyst at UBS, said central banks’ efforts to diversify their investments, concerns over rising government debt and increasing debt-servicing costs could support gold prices. He expects gold prices to stabilise and resume their upward trend towards the end of the year and into 2027.
Other precious metals also gained on Tuesday. Spot silver rose 0.2 per cent to $60.4481 an ounce, while platinum climbed 0.9 per cent to $1,701.10 an ounce. Palladium advanced 0.5 per cent to $1,149.52 an ounce.
- MaT
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Editor : Iqbal Sobhan Chowdhury
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
