NewsSignals AI analysis·Reuters·Oct 26, 2026

Gold gains on softer oil prices; Fed decision in focus

Grade Bbearish AI signal$XAU

Gold edged 0.4% higher as falling oil prices eased inflation concerns, offering bullion a modest rebound ahead of the Federal Reserve's policy decision. Spot gold reached $4,010.51 per ounce after hitting its lowest level since mid-July, following a 4% weekly decline, while markets largely expect the Fed to hold rates steady this week and price in a 77% chance of a December rate hike. Gold could face renewed pressure if persistent inflation strengthens expectations for higher interest rates, while further oil price declines and easing geopolitical tensions may provide support.

Bullish strength: 43/100

Softer oil prices eased inflation concerns and supported a 0.4% gold rebound.
Expectations for the Fed to leave rates unchanged this week may limit immediate policy-driven pressure.

Bearish strength: 57/100

Gold recorded a 4% weekly decline, its steepest since June.
Markets priced in a 77% probability of a December rate hike, which could reduce demand for non-yielding bullion.
Robust business demand and rising selling prices indicate persistent inflation risks.

This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

Read the original source ↗

← Browse more news analysis

Trade on MEXC

More recent source-attributed AI analysis in macro.

Gold climbs to two-week high as dollar, yields weaken

Gold climbed 1% to $4,102.50 per ounce, reaching its highest settlement since October 21 as a weaker US dollar and falling Treasury yields boosted demand. The 10-year Treasury yield dropped 5.5 basis points to 4.836%, while silver gained 0.2% to $52.233 per ounce. Gold could face renewed selling pressure if Friday's US jobs report strengthens expectations for a December Fed rate hike, despite improving near-term momentum.

Goldman Sachs trims gold forecasts as Fed stays hawkish

Goldman Sachs cut its end-2026 gold price forecast to $4,150 per ounce from $4,650 and its end-2027 target to $4,800 from $5,400, citing the Federal Reserve's increasingly hawkish policy stance. The bank warned that higher oil prices and equity-market drawdowns could trigger additional gold selling, while central-bank demand and long-term investor interest remain supportive. Lower price targets could pressure gold sentiment, although persistent structural demand may limit downside and support longer-term prices.

Goldman Sachs lowers gold price forecasts on hawkish Fed outlook

Goldman Sachs cut its end-2026 gold price forecast to $4,150 per ounce from $4,650, citing the Federal Reserve's increasingly hawkish policy outlook. The bank also reduced its end-2027 forecast to $4,800 from $5,400, warning that higher interest rates could weigh on investor demand despite continued central-bank buying. Persistent monetary tightening and potential oil-driven selling could pressure gold, although structural central-bank demand and fiscal-risk hedging may limit downside.

Treasury Yields Hover Around Two-Month Lows Ahead of Payrolls — Market Talk

U.S. Treasury yields are hovering near two-month lows as bond markets increasingly price in the possibility of a December Federal Reserve rate hold ahead of October payrolls. The 10-year yield fell to 4.836% and the two-year to 4.475%, while December rate-hold odds climbed to 35% from 17% in one day. Tomorrow's jobs report could trigger a sharp repricing of rate expectations, potentially driving renewed volatility across Treasury yields, the dollar and gold.