Gold Falls 0.63 Percent as Treasury Yields Rise

Gold prices declined in late US trading on Monday, October 19, 2026, as rising Treasury yields and a stronger dollar pressured the precious metal despite expectations that the Federal Reserve would hold interest rates steady at its October meeting. Silver edged higher, while uncertainty surrounding energy supplies and inflation continued to shape investor demand for precious metals, according to Kitco NewsWire.

Spot gold traded near $4,137.80 an ounce, down $26.30, or 0.63 percent, in late trading, while spot silver reached $56.930, up $0.068, or 0.12 percent. Bloomberg separately reported that bullion traded around $4,120 an ounce after declining 0.6 percent in the previous session.

US economic data reinforced concerns about persistent inflation. September consumer prices increased 0.6 percent from the previous month and 3.7 percent year over year, while producer prices climbed 1.3 percent monthly and 6.3 percent annually, according to Kitco. Retail sales rose 0.8 percent in September, indicating continued consumer spending despite elevated borrowing costs.

Financial markets increasingly expect the Federal Reserve to leave rates unchanged at its October 27-28 meeting. Kitco reported that futures markets placed the probability of an October rate increase in the mid-teens, while expectations for another increase in December remained close to 90 percent.

The benchmark 10-year US Treasury yield rose to approximately 5.135 percent during late trading, reversing part of the previous week's bond-market rally. The US dollar also strengthened, partly benefiting from weakness in the euro, adding pressure to gold, which does not pay interest.

China's economic growth accelerated to 4.5 percent year over year in the third quarter, compared with 4.3 percent in the second quarter, according to Kitco. Exports supported the expansion, although weak domestic consumption and property investment continued to weigh on the economy.

Energy-market uncertainty added another layer to the outlook for inflation and interest rates. Bloomberg reported that oil had climbed to a five-month high amid tensions involving Iran and the Strait of Hormuz, while disagreements in Washington over President Donald Trump's proposed diesel export arrangement with Russia contributed to uncertainty over energy supplies.

Kitco's late-session report, however, showed crude oil futures retreating from recent highs. December Brent crude settled at $109.55 a barrel, down 0.3 percent, while December West Texas Intermediate crude settled at $98.54, down 0.5 percent. The November WTI contract, which was nearing expiration, rose to $103.66 amid thin trading.

Shipping disruptions around the Strait of Hormuz remained a concern because crude shipments through the strategic waterway were still below prewar levels. Kitco reported that uncertainty over a lasting agreement between Washington and Tehran continued to support a geopolitical risk premium in energy markets, even as Monday's decline in oil prices eased some immediate inflation pressure.

Earlier in the US session, lower oil prices and Treasury yields had helped limit losses in gold, according to Kitco's morning report. Spot gold was then near $4,159.70 an ounce, down $4.40, or 0.11 percent, while silver traded at $57.300, up $0.437, or 0.77 percent. The subsequent decline in gold prices reflected a shift as the dollar and Treasury yields strengthened later in the day.

US stocks recovered from the previous week's technology-led selloff, with the Nasdaq Composite gaining 1.1 percent to 26,430.89 and the S&P 500 rising 0.4 percent to 7,690.73. The Dow Jones Industrial Average slipped 0.1 percent to 51,966.03. The rebound in technology shares reduced some demand for defensive assets as investors reassessed concerns about artificial intelligence infrastructure spending and corporate valuations.

European markets finished lower amid concerns about government finances, borrowing costs and political stability. The Stoxx Europe 600 declined 0.80 percent to 639.56, France's CAC 40 fell 1.11 percent to 7,868.05, Germany's DAX lost 1.18 percent to 25,319.77, and the UK's FTSE 100 dropped 1.08 percent to 10,764.69, according to Kitco.

Investors are now watching US housing starts and pending home sales on Tuesday, weekly jobless claims on Thursday, and preliminary purchasing managers' indexes and final October consumer sentiment figures on Friday. Kitco identified these releases as important tests of employment conditions, business activity and inflation expectations ahead of the Federal Reserve's next policy meeting.