Casablanca – Gold prices stayed below $4,000 an ounce on Saturday after hitting their lowest level in three months on Friday. Rising oil prices have raised concerns that the US Federal Reserve may keep interest rates high for longer.

GoldPrice.com listed spot gold at $3,996.30 an ounce on Saturday, close to Friday’s reported price of $3,995.81.

On Friday, spot gold fell 0.6% to $3,998.35 an ounce in the afternoon. It had earlier dropped to $3,975.23, its lowest level since mid-July. Gold lost about 4% over the week, its biggest weekly drop since June and its second weekly loss in a row. US gold futures for December delivery fell 1.3% to $4,007.90. GoldPrice.com data also showed that gold had fallen 8.5% since the start of 2026.

Higher oil prices helped drive the decline. Brent crude reached its highest level in more than five months after Houthi attacks in Saudi Arabia raised concerns about possible supply disruptions. Recent US consumer and producer inflation figures also came in higher than expected, adding to concerns about rising prices.

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Gold does not pay interest, so higher interest rates can make it less attractive than investments that earn interest. Markets widely expect the Fed to keep rates unchanged at its October 27-28 meeting. The CME FedWatch Tool showed a 92% chance of no change, while traders saw a 78% chance of a rate hike in December, according to Reuters.

Investors are also waiting for the US Personal Consumption Expenditures report on October 29. The report measures inflation and helps guide the Fed’s decisions.

Falling technology stocks added pressure on gold. AI-related shares pushed the S&P 500 and Nasdaq to their lowest levels in five weeks on Friday. The market drop also triggered margin calls, forcing some investors to sell gold and silver to raise cash.

Lower gold prices encouraged buying in India during the Dussehra festival and pushed up local premiums. In China, jewelry demand remained steady, although cautious shoppers continued to limit spending.

Other precious metals also fell on Friday. Silver dropped 1% to $53.97 an ounce, while palladium lost 0.5% to $1,048.31, its lowest level since November 2025. Platinum fell 0.9% to $1,555.84, its weakest level since July. All three metals recorded weekly losses.