empty
13.10.2026 09:41 AM
Gold Supported by Cheaper Oil Ahead of Key Inflation Data

Gold rose 0.7% today, briefly touching $4,200 per ounce. Silver gained 0.5% to $60.57, and platinum and palladium also advanced.

The main theme this week is traders taking a wait-and-see stance ahead of tomorrow's US inflation data. Swap markets price in a low probability of a Federal Reserve hike in October and one hike before year-end. That implies the market largely views the October 28 meeting as a pause, with the debate focused on December. For gold, this is a comfortable backdrop because the absence of an immediate tightening reduces the opportunity cost of holding the metal.

This image is no longer relevant

A second support factor is oil. Brent fell to about $105 per barrel after three days of gains, which helped gold. Since late February, when the US–Iran conflict began, gold has often moved opposite oil because of a chain effect: expensive oil accelerates inflation expectations; they increase Fed tightening rates; bond yields rise; and this puts pressure on gold, which does not generate interest. When oil eases, the chain works in reverse, benefiting gold holders and hurting those betting on further yield rises.

Cleveland Fed president Beth Hammack also played a role. She said smaller, more frequent rate adjustments help keep inflation expectations in check but did not endorse an October hike. That eased some fear of an immediate move, preventing a stronger dollar and allowing gold to test $4,200. Hawkish rhetoric without a concrete timing typically pressures gold less than an actual rate increase.

All eyes are on Wednesday's CPI. Consensus expects a moderate print consistent with a Fed pause. Producer prices and import-price data later in the week will show how energy and import pressures feed into domestic prices. If those readings exceed expectations, bets on a December hike will rise and gold will face yield-driven headwinds.

My view: before CPI, gold will likely trade in a narrow range around $4,200, and a close above $4,192 would keep buyers in control. If inflation is soft and oil stays below $105, I expect attempts to push toward $4,250. If CPI surprises to the upside, yields would rise, and gold would fall back toward support near $4,125.

This image is no longer relevant

Technical picture: buyers need to take nearest resistance at $4,192 to target $4,249, above which a breakout becomes difficult. The most distant upside target is $4,304. On the downside, bears will try to seize $4,124; if they succeed, a range breakout would hit bulls hard and push gold to $4,062, with a prospect of extending to $4,047.

Miroslaw Bawulski,
Analytical expert of InstaForex
© 2007-2026
EUR
Summary
Neutral
Urgency
1 day
Analytic
Maxim Magdalinin
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In October we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback