Hawkish commentary from three Federal Reserve officials and accelerating inflation data have driven market expectations for a December rate hike to approximately 75 percent. Margin calls prompted by a tech stock selloff previously pushed spot prices below the $4,000 threshold, marking their lowest range since October 2025. Although other precious metals like silver, platinum, and palladium posted modest gains, physical buyers in India and China are delaying major purchases.
Key points
Anticipation of another Federal Reserve interest rate hike is diminishing the overall app…: Anticipation of another Federal Reserve interest rate hike is diminishing the overall appeal of holding non-yielding bullion.
Margin calls triggered by a steep plunge in technology equities forced investors to liqui…: Margin calls triggered by a steep plunge in technology equities forced investors to liquidate safe-haven precious metals.
Major physical gold buyers in India and China are withholding purchases in anticipation o…: Major physical gold buyers in India and China are withholding purchases in anticipation of further downward price movements.
Sources checked by our analysis pipeline: 1
Fundamentals
Spot gold was up 0.5% at $3,894.89 per ounce by 0042 GMT but hovered near its lowest level since October 2025, touched in the previous session. US gold futures for December delivery rose 0.1% to $3,903.90.Bullion hit its lowest since October 2025 on Friday, falling below its key $4,000 per ounce level amid a sharp fall in technology stocks that led to forced selling of safe-haven assets such as gold and margin calls, analysts at Commerzbank said in a note on Friday.
A trio of Fed officials made the case on Friday for more interest rate increases to combat high levels of inflation, in the first round of commentary made by central bankers after last week's monetary policy meeting that saw short-term borrowing costs left steady.
Data showed US inflation accelerated in September as consumers paid more for gasoline and other goods, supporting economists' expectations of an interest rate increase from the Fed in December.
Traders are pricing in about a 75% chance of a rate hike in December, according to the CME's FedWatch Tool.
Market participants are closely watching the diversified conglomerate's core cigarette business to gauge the fallout from recent tax adjustments on profitability. Brokerages anticipate significant earnings pressure due to volume declines and tax-induced price increases, even as non-tobacco divisions offer partial operational support. Meanwhile, some market analysts view current valuation levels as an attractive buying window ahead of the financial disclosure.
Investors are actively monitoring the performance of one of the world's largest financial institutions during the current trading session. Market participants are seeking clarity regarding the underlying factors contributing to the upward momentum. A precise catalyst explaining the recent equity movement remains under active review by financial observers.
Geojit Investments strategist Anand James cautions that headline index gains mask severe weakness across broader market segments, leaving small-cap and mid-cap shares lagging behind. Meanwhile, strong sectoral accumulation has positioned technology stocks for potential sustained leadership, even as beaten-down consumer names struggle to demonstrate fundamental turnarounds.