GOLD SLIPS TO NEAR 3-MONTH LOW AMID TECH SELLOFF AND INFLATION WORRIES

Fri 23 October 2026:

Gold prices edged lower Friday, approaching their lowest levels in nearly three months as a selloff in technology stocks and inflation concerns fueled by rising oil prices weighed on demand.

Gold traded at $4,015.63 an ounce, down $9.19, or 0.23% as of 0630GMT. The precious metal has fallen 6.08% over the past month and 2.36% over the past year.

The decline came as losses in technology and artificial intelligence stocks prompted investors to sell precious metals to cover losses elsewhere in their portfolios.

Concerns over the cost of AI investment intensified after Meta Platforms outlined plans to increase capital expenditure, raising fears that technology companies could take on additional debt to finance their expansion.

Rising oil prices also pressured gold by heightening inflation concerns and reinforcing expectations that interest rates could remain elevated for longer.

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Higher interest rates typically reduce the appeal of gold, which pays no interest, relative to interest-bearing assets.

However, uncertainty over the sustainability of AI investment, a key contributor to US economic growth, prompted markets to pare back expectations for further Federal Reserve rate increases, offering some support to precious metals.

Gold has dropped to a three-month low near $4,000–$4,024 per ounce amid the ongoing Middle East conflict, even as wars usually boost safe-haven demand.

The US-Iran conflict (ongoing since late February 2026) and recent escalations—including Houthi attacks on Saudi oil infrastructure and concerns over potential renewed strikes—have driven oil prices up sharply, with Brent crude jumping about 3–4% to five-month highs around $112 a barrel.

Higher energy costs fuel inflation fears. This strengthens expectations that the Federal Reserve will keep interest rates higher for longer (or raise them again, possibly in December), increasing the opportunity cost of holding non-yielding gold. As a result, the metal’s traditional safe-haven appeal is being outweighed by rate and inflation pressures, contributing to its roughly 20% decline since the conflict began and its steepest weekly drop in months.

Investors are now watching the Fed’s October 27–28 meeting and upcoming inflation data for further direction.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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