While rising energy costs boosted oil, precious metals experienced sharp liquidation as investors sold assets to cover cash needs during broader stock market declines.

Gold: Spot gold briefly dipped below $4,000 to $3,993.96 per ounce—its lowest level since mid-July—recording a 4% weekly decline before staging a partial recovery to $4,026. In domestic retail markets in India, 24K gold edged up slightly by ₹100 to ₹1,42,580 per 10 grams following recent sharp drops.

Silver: Extended its losses to $53.50 per ounce, marking its lowest level since November 2025 due to softening industrial sentiment and a 6% drop in the prior session.

Recent U.S. consumer and producer price data showed higher-than-expected inflation, largely propelled by elevated energy costs. The rise in oil prices has reinforced expectations that the U.S. Federal Reserve will maintain a “higher-for-longer” interest rate environment.

Despite the persistent inflationary pressures, markets expect the Federal Open Market Committee (FOMC) to leave interest rates unchanged at its upcoming October 27–28 meeting.

According to a study, traders are currently pricing in less than a 10% chance of a rate hike in October, compared to an 80% probability for the December meeting. Investors are now awaiting the U.S. PCE inflation data due on October 29 for further policy guidance.