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Gold prices plunge again
Published : Friday, 30 October, 2026 at 4:34 PM
Observer Online Report
Gold prices in the global market have taken another major dip, driven by rising crude oil prices and persistent inflationary pressures in the United States. A growing expectation that the US Federal Reserve (Fed) will raise interest rates has severely dampened market sentiment, pulling the precious metal down below the key psychological threshold of $4,000 per ounce.
As of 1:40 PM Bangladesh Time on Friday (October 30), spot gold dropped 0.9% to $3,982.85 per ounce. Meanwhile, US gold futures for December delivery fell 1% to $3,992.50 per ounce.
Along with weekly declines, gold is now on track to post its second consecutive monthly loss in the global market.
Tim Waterer, chief market analyst at KCM Trade, noted that gold's decline is directly testing the critical $4,000 technical support level. In past downturns, buy-the-dip sentiment among investors often helped stabilize the market. However, it remains to be seen whether buyers will step in this time to spark a recovery.
He added that positive US macroeconomic indicators released this week have fueled expectations of a Fed rate hike in December. Combined with elevated energy prices, rising inflation concerns continue to erode gold's appeal.
Inflation in the US picked up in September, driven by higher prices for gasoline and other essential goods, which boosted consumer spending. This has solidified market bets on a Fed rate hike at its upcoming December meeting.
Typically, when central banks raise interest rates, the opportunity cost of holding non-yielding assets like gold increases, pushing investors toward interest-bearing alternatives and dampening demand for bullion.
According to the CME FedWatch Tool, market participants now price in roughly a 72% probability of a December rate hike.
Meanwhile, global crude oil prices edged higher on Friday, putting oil on course for a fourth consecutive monthly gain.
A recent attack on an oil tanker in the Strait of Hormuz has renewed supply security fears in the Middle East. Market analysts warn that ongoing tensions involving the US, Israel, and Iran could heighten overall supply risks.
Sustained high energy costs risk worsening global inflationary pressure. If the Fed responds by tightening monetary policy further, gold prices are likely to remain under pressure.
Separately, Tokyo's core annual inflation rate topped the Bank of Japan's 2% target in October, according to data released Friday, signaling persistent price pressures in the Japanese capital.
Other precious metals also traded lower on Friday. Spot silver fell 3.1% to $50.74 per ounce, platinum declined 3.3% to $1,439.05, and palladium slipped 2.3% to $982.50. All three metals are set for weekly and monthly losses. (Source: Reuters)
Under the adjusted rates, 22-carat gold in the domestic market will cost BDT 2,23,074 per bhori (11.664 grams), including VAT. In addition, 21-carat gold is set at BDT 2,13,043 per bhori, 18-carat gold at BDT 1,82,950 per bhori, and traditional gold at BDT 1,49,474 per bhori.
-MT
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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, 01550707296
E-mail: [email protected], [email protected]. [email protected], [email protected], [email protected], [email protected], Online-email: [email protected]
