Spot gold (XAU/USD) fell to its lowest level in more than two months near $4,025 per ounce during the Friday, October 23, 2026 session, according to live market updates from Mitrade and The Economic Times, putting bullion on track for its steepest weekly drop in four months.
Why Surging Oil Prices Are Pressuring Non-Yielding Bullion
After trading near $4,183 earlier in the week, gold broke below the $4,100 psychological support on October 22 ($4,066.56 intraday low) and extended losses on October 23 as Brent crude oil surged past $111–$113 on Middle East supply fears.
Key Macro Forces Shaping the Gold Market Today
- Energy-Driven Inflation Risk: Oil above $110 complicates the Federal Reserve's path ahead of next week's October 27–28 FOMC meeting.
- High US Treasury Yields: According to US Treasury data, the 10-year yield sits at 5.12% and the 20-year at 5.47%, raising the opportunity cost of holding gold.
- Central Bank Accumulation Floor: Structural support remains from central banks, which added 170 tonnes in the first eight months of 2026 led by China's 23-month buying streak.
While central bank buying provides a long-term floor, $111 crude oil and 5.12% 10-year Treasury yields are forcing a near-term repricing in XAU/USD.
Technical Support and Resistance Levels to Watch
Traders are closely watching whether spot gold holds the $4,000–$4,025 support zone ahead of the Federal Reserve announcement, with upside resistance now clustered at $4,104–$4,113 and $4,185–$4,195.
Impact on Physical Retail Gold Markets
In Asian physical markets, domestic gold bar prices dropped sharply on Friday, prompting warnings that the short-term correction phase may continue. Full primary documentation is available via Mitrade October 23 XAU/USD Commodity Analysis.
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