Gold flirts with a drop below $4,000 as oil and rate fears pressure haven assets

Gold prices ended Friday, October 23, near their weakest levels since mid‑July, with spot gold closing around $3,997 per troy ounce—just under the closely watched $4,000 threshold. A troy ounce, the standard measure in precious‑metals markets, is roughly 31.1 grams. The slide comes as rising oil prices fuel worries about a second wave of inflation, pushing U.S. Treasury yields higher and undermining demand for non‑yielding assets like gold.

A stronger U.S. dollar is adding to the pressure. Because gold is usually priced in dollars, dollar appreciation makes it more expensive in other currencies and can dampen overseas investment demand. Geopolitical tensions in the Middle East and Europe would normally support interest in so‑called safe‑haven assets, but for now, portfolio de‑risking and profit‑taking appear to dominate the flows into and out of gold.

Looking ahead, the path of U.S. monetary policy remains the key driver. If expectations of further rate hikes fade, that could set the stage for a rebound in gold. Conversely, if elevated oil prices feed back into stronger inflation data, investors may test support below $4,000, ushering in another bout of volatility for global and Japanese investors who treat gold as a core defensive holding.