Now Reading: Gold falls as oil, inflation, Fed rate path weigh
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Gold falls as oil, inflation, Fed rate path weigh
The Story in Brief
Gold prices fell on Friday, 6 November 2026, with spot gold down 0.4 per cent to $4,070.59 per ounce and US gold futures dropping 0.8 per cent to $4,080.70. Despite the daily decline, gold was up 5 per cent for the week and on track for its strongest week in over two months, after hitting a one-year low of $3,869.85 on 30 October.
Investors are awaiting the US non-farm payrolls report for cues on the Federal Reserve's interest rate trajectory. Two Fed officials on Thursday backed small, steady rate hikes to rein in above-target inflation, and traders see a 70 per cent chance of a December rate hike, according to CME's FedWatch tool.
UBS analyst Giovanni Staunovo noted an 'extremely strong correlation' between oil prices, inflation and gold rates. Brent crude climbed back towards $100 a barrel, while Goldman Sachs lowered its end-2026 gold price forecast to $4,150 per ounce from $4,650, citing the Fed's hawkish stance.
Indian Opinion Analysis
The price fall reflects competing forces: a weaker labour market could support gold, but the Fed's hawkish turn and rising oil prices raise the opportunity cost of holding bullion. Goldman Sachs' sharp cut in its year-end forecast signals that institutional expectations have shifted decisively against a near-term rally. The non-farm payrolls report, due next, will test whether traders' 70 per cent probability of a December hike holds or eases.
Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
