GOLD prices hovered near a three-month low on Monday as investors awaited the US Federal Reserve’s policy meeting this week for clues on the interest-rate outlook, with persistent inflation concerns weighing on the precious metal.
Reuters reported n Monday that spot gold fell 0.2% to US$3,987.45 an ounce, equivalent to about RM520 a gram, after hitting its lowest level since mid-July in the previous session.
The metal plunged 4% last week, marking its biggest weekly decline since June.
US gold futures for December delivery also slipped 0.2% to US$4,000.80 an ounce.
Oil prices eased after surging to a near six-month high late last week, although continued attacks on Saudi Arabia kept concerns over energy supplies in focus.
Elevated energy prices have strengthened expectations that the Fed will keep interest rates high for longer, increasing the opportunity cost of holding non-yielding gold.
Geopolitical developments remained another concern, with Saudi Arabia reporting that its main airport had resumed operations at two terminals yesterday despite Yemen’s Iran-aligned Houthi group vowing to continue attacks on the facility, which it described as a “military target”.
Qatari mediators were in Tehran on Sunday as part of efforts to ease regional tensions in coordination with the United States, a source familiar with the matter told Reuters.
Meanwhile, US consumer sentiment slipped slightly in October towards record lows as price increases linked to the Middle East conflict weighed on households’ economic outlook, according to a survey released on Friday.
The findings come ahead of congressional midterm elections expected to focus heavily on the cost of living.
US business activity also expanded at a slightly slower pace in October, although resilient demand allowed companies to raise prices for goods and services, pointing to the risk of inflation rising further and remaining elevated in the coming months.
Investors are now awaiting the Fed’s policy decision this week and the US Personal Consumption Expenditures (PCE) price index, a key inflation measure closely monitored by the central bank as it seeks to achieve its 2% inflation target.
Traders are pricing in about a 9% probability of an interest-rate increase this week, while expectations of a rate hike in December remain at 80%.
Among other precious metals, spot silver rose 0.2% to US$54 an ounce, platinum fell 0.1% to US$1,549.42, while palladium gained 0.4% to US$1,047.90. - October 26, 2026