Gold drops to a one-year low

Gold prices fell below $3,900 per ounce, hitting their lowest level since October 2025, as rising energy prices and persistent inflation concerns reinforced market expectations that the Federal Reserve will maintain high interest rates for a longer period. Major central banks, including the Federal Reserve and the European Central Bank, kept interest rates unchanged this week but signaled that the fight against inflation is not yet over, highlighting risks posed by surging energy costs. Meanwhile, data released in the US on Thursday showed that inflation accelerated in September, with core price increases also expanding, strengthening market expectations that the Federal Reserve could raise rates in December. Technology stocks were heavily sold off amid concerns over rising spending related to artificial intelligence, which could trigger cross-market forced liquidations and margin calls, further pressuring gold. Additionally, oil prices climbed due to concerns over escalating conflicts in the Middle East, while physical gold demand in major Asian markets remained subdued.