Gold price today: Gold rate crashes to lowest in 2 months, silver price drops. Here's what to expect

Gold rate today fell to its lowest level since August 4. Spot gold slid 1.9 per cent to $4,060.37 per ounce to its lowest level in more than two months on Thursday. US gold futures for December delivery fell 1.8 per cent to $4,075.70 per ounce. This comes as a rally in oil prices heightened inflation worries ahead of the Federal Reserve's policy decision next week.

Spot silver dropped 3.9 per cent to $55.7225 per ounce, platinum slid 2.9 per cent to $1,581.73, its lowest since July 29, while palladium fell 2.5 per cent to $1,059.75 after hitting its lowest level since June 2025.

Gold Rate Prediction


"Gold prices can fall further... because we are still seeing a lot of uncertainty around the energy market," said Soni Kumari, analyst at ANZ.

"We expect precious metals to lack clear direction, although volatility is likely to remain high. Gold could continue to trade for a couple of quarters near an average of $4,200 per ounce, driven by a sharp contraction in global jewellery demand," economists at Intesa Sanpaolo said in a note.

Brent prices rose to their highest since May after more Houthi attacks in Saudi Arabia stoked concerns over a broader escalation of conflict and further disruptions to crude oil supplies from the world's key exporting region.

Meanwhile, US consumer and producer inflation data came in hotter than expected last week, largely on higher energy costs. That strengthens the case for tighter policy, even though Fed officials are still expected to hold off when they meet on October 27-28.

While gold is typically considered a hedge against inflation, higher interest rates reduce the appeal of the non-yielding asset.

Goldman Sachs expects one more 25-basis-point hike in December, lifting the peak policy rate range to 4.00 per cent-4.25 per cent. Traders are pricing in an 86 per cent likelihood of a December increase, according to CME's FedWatch Tool.

US Personal Consumption Expenditures data, set for release on October 29 and closely watched by the central bank, could give more clues on rate outlook.

"Given that the PCE data will show that prices rose at an uncomfortably high pace for the Fed, the FOMC communications may strike a hawkish tone and that could weigh on gold prices," said Hamad Hussain, climate and commodities economist at Capital Economics.