Gold Falls Below $4,100, Risks Dropping to $4,000 as High Oil Prices Reinforce Expectations of High Fed Rates - TradingKey

AI desk brief

Spot gold fell below $4,100 in Asian trade on Oct. 22, touching $4,066.56 as high oil prices reinforced expectations that the Fed will keep rates elevated. The move leaves $4,066 as key support; a break opens downside toward $4,000, while resistance is seen at $4,140.

The article says Brent has recently reclaimed $110/bbl amid Middle East supply risks, stoking inflation concerns ahead of the Oct. 27-28 Fed meeting and upcoming U.S. PCE data. CME FedWatch shows only a ~16% chance of an October hike but nearly 90% for December, keeping the market focused on prolonged high real rates as a headwind for non-yielding gold.