Gold Rises as Oil Retreats Amid
Anticipation of US Rate Decisions

Tokyo, 19 Oct 2026 (ONA) — Gold
prices rose today, drawing support from retreating oil prices, as investors
weighed the likelihood of the Federal Reserve raising interest rates later in
the year and sought fresh signals on the central bank’s policy path.

Spot gold climbed 0.3 percent to
$4,175.60 an ounce, while US gold futures for December delivery gained 0.4
percent to $4,196.40.

Oil prices fell after US President
Donald Trump exempted Russia from sanctions and tariffs that could increase
Russian fuel exports.

Meanwhile, US import prices rose
more than expected in September, driven by higher costs for energy products and
a range of other goods, offering fresh evidence of mounting inflationary
pressures as the conflict in the Middle East persists.

Market participants now await the
Federal Open Market Committee’s meeting on US interest rates and personal
consumption expenditure data due next week.

The Federal Reserve monitors
personal consumption expenditure price measures in pursuit of its 2 percent
inflation target. The CME Group’s FedWatch tool indicates that traders are
pricing in a 16 percent probability of a rate hike this month and a 92 percent
probability of an increase in December. Although gold is an inflation hedge,
higher interest rates diminish the appeal of the non-yielding metal.

The International Monetary Fund said
last Friday that the European Central Bank is likely to raise interest rates by
25 basis points at least once more this year to combat inflationary pressures.

Among other precious metals, spot
silver rose 0.9 percent to $57.54 an ounce, platinum gained 0.7 percent to
$1,642.29, and palladium advanced 1.5 percent to $1,129.13.

— Ends/Khalid