Gold prices fell below $3,900 an ounce on Friday, reaching a new year-to-date low. The daily low of $3,891 was the lowest since October 28, 2025, and the metal was down more than 3 percent at the time of writing.
Traders pointed to the Federal Reserve’s decision on Wednesday, which left investors without clear forward guidance from Chair Kevin Warsh. That silence has made markets skeptical about an interest rate increase in December, according to an FXStreet article.
Strong data and rising hike bets
US economic growth held up this week, and jobs data pointed to a strong labor market.
Prime Terminal pricing put the market-implied chance of a December rate hike at 70 percent, down from 84 percent before Wednesday’s Fed meeting. Gold is priced in dollars, so the firmer currency added to the pressure.
Oil and the dollar
Higher oil prices, driven by the escalation of the Middle East conflict, boosted the dollar’s appeal. US Treasury yields eased, but that did little to support the metal.
By our market data, as of 01:19 GMT on 1 November, gold stood at $3,876.73 an ounce, its lowest in 31 days.
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Data: Swissquote