Global gold prices retreated and domestic gram gold values declined across international markets after the United States Federal Reserve voted to hold benchmark interest rates steady at 3.75 to 4 percent. Analysts point to shifting monetary policy expectations and strengthening energy costs as central pressures on bullion values.
Federal Reserve Holds Rates as Gold Prices Dip
The United States Federal Reserve held benchmark interest rates unchanged within the 3.75 to 4 percent range during its October policy meeting, matching widespread market expectations. Following the announcement, spot gold experienced downward pressure as investors reassessed the future path of monetary tightening. Spot gold retreated 0.4 percent to trade at 4,051.91 dollars per ounce, while international spot valuations momentarily dipped to 4,036 dollars. Data on October 28, 2026, indicated that spot gold was priced at 4,048 dollars by 15:12, while gram gold sat at 6,482 Turkish liras by 14:57.
The Federal Open Market Committee (FOMC) reached this decision with a vote of 10 to 2. Fed Chairman Kevin Warsh indicated that the bank might reduce the number of its scheduled policy meetings from eight to six, a move that could increase policy uncertainty and suggest that tightening may persist. Market focus has now shifted toward the upcoming Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, to garner further clues on the future interest rate path and the direction of U.S. Treasury yields.
In domestic markets, gram gold slipped from approximately 6,530 Turkish liras prior to the decision down to 6,466 liras, eventually trading around 6,473 liras. Other denominations saw similar declines: çeyrek gold at 10,583.36 liras, yarım gold at 21,166.72 liras, ziynet gold at 42,203.97 liras, and Cumhuriyet gold at 43,724 liras.
Sucden Financial Projects Gold May Test 3,900 Dollars
Financial institutions have adjusted their outlooks as technical indicators signal continued selling pressure across precious metals. According to a quarterly metal report by the London-based Sucden Financial, strengthening interest rate hike probabilities and rising energy costs could cause gold to test critical support levels of 3,900 dollars before the December Fed meeting. The report further projects a 2027 outlook for gold between 4,200 and 4,300 dollars. In the silver market, which has faced a decline from its January peak of 121.62 dollars, analysts expect the metal to trade between 50 and 53 dollars by year-end, with a 2027 projection of 57 to 60 dollars.
Gold prices fell more than 1% on Thursday as rising oil prices fuelled inflation concerns and reinforced expectations that interest rates could remain higher for longer.Spot gold declined 1.1% to $4,094.90 per ounce by 03:33 GMT, its lowest level since October 14, while US gold… pic.twitter.com/5qpewY29AV
In contrast, Amundi struck a more optimistic long-term note, projecting that ons gold could climb at least 10 percent from current levels to reach 4,500 dollars, even as a prior 5,000-dollar year-end target became less likely. Lorenzo Portelli, head of multi-asset strategy at the Amundi Investment Institute, stated that the sharpest phase of the sell-off may have passed. Meanwhile, Ole Hansen, Saxo Bank Emtia Stratejisi Başkanı, highlighted that while a dip below 4,000 dollars remains possible, levels of 4,070 and 4,230 dollars are critical for potential recovery.
Energy Costs Weigh on Precious Metal Prices
Rising energy prices and ongoing geopolitical tensions continue to complicate the traditional safe-haven status of precious metals. Brent crude has seen volatility, recently trading near 111.22 dollars per barrel. Dr. Zekeriya Şahin noted that high interest rate expectations, energy supply crises, and geopolitical developments are weighing on prices. He emphasized that in some instances, countries may liquidate gold and gold-backed bonds to cover energy and petroleum costs. However, Şahin also highlighted that central bank demand remains a significant pillar for the market, citing World Gold Council data that showed central banks purchased 289 tons of gold in the second quarter of 2026, with China acquiring 20 tons in August alone.
Dr. Zekeriya Şahin, addressing concerns over potential market manipulation, noted that while such theories are debated, there is no concrete data to verify them. In domestic retail markets, İslam Memiş warned that changing consumer habits—moving away from jewelry toward investment-grade bars—and high commercial rents in the Kapalıçarşı, which can reach 1 to 2 kilograms of gold annually, could lead to a significant reduction in the number of physical jewelry storefronts across Turkey by 2030.
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Gold prices fell on Thursday as investors assessed the Federal Reserve’s latest policy signals and positioned ahead of key U.S. inflation data that could shape expectations for another interest-rate increase before the end of the year.Spot gold fell 0.7% to $4,037.98 per ounce… pic.twitter.com/2zCqDQ7PmM
#xauusd #gold The Federal Reserve kept rates unchanged at 3.75%–4.00%, but inflation remains elevated and policymakers left the door open to further tightening. With September PCE due next, short-term volatility around the marked H1 zones should remain high.Technical View… pic.twitter.com/93SDo8LU2p