October 29, 2026 - Gold Falls 0.96% to $4,028.52, Silver Drops 2.11% to $52.83 and Brent Declines 1.37% to $110.11

Global Markets

(A) Precious Metals

Gold: $4,028.52/oz (-0.96%)

Gold declined 0.96% to $4,028.52/oz as a firmer U.S. dollar, Federal Reserve policy uncertainty and cautious positioning ahead of U.S. inflation data pressured bullion.

Markets priced approximately a 78% probability of a December rate hike, while analyst Ajay Kedia highlighted geopolitical uncertainty and cautious investor sentiment as additional pressures.

Silver: $52.83/oz (-2.11%)

Silver fell 2.11% to $52.83/oz as dollar strength, elevated Treasury yields and concerns over industrial demand intensified selling pressure.

Expectations of restrictive Federal Reserve policy and upcoming core PCE inflation data encouraged cautious positioning, while persistent inflation concerns continued to weigh on precious metals.

(B) Energy

Brent Crude: $110.11/bbl (-1.37%)

Brent declined 1.37% to $110.11/bbl as renewed U.S.-Iran diplomatic efforts raised hopes of easing Middle East supply disruptions, reducing oil's geopolitical risk premium.

Analyst Yuki Takashima highlighted renewed peace negotiations as a key source of selling pressure, while a reported 1.9-million-barrel decline in U.S. crude inventories provided some support.

(C) FX

DXY: 102.18 (+0.05%)

The U.S. Dollar Index gained 0.05% to 102.18 as the Federal Reserve maintained interest rates at 3.75% - 4.00%, supporting expectations of restrictive monetary policy.

Fed Chair Kevin Warsh's comments tempered longer-term rate-hike expectations, while investors awaited U.S. core PCE inflation data for further policy direction.

USD/JPY: 157.75 (-0.06%)

USD/JPY declined 0.06% to 157.75 as the yen strengthened modestly following the Federal Reserve's decision and softer U.S. Treasury yields.

Investors awaited the Bank of Japan's October 30 policy decision, with expectations of possible December tightening supporting the yen.

EUR/USD: 1.1145 (-0.08%)

EUR/USD declined 0.08% to 1.1145 as French fiscal uncertainty and cautious positioning ahead of the ECB decision pressured the euro.

Markets expected the ECB to maintain rates, while concerns over French government debt and bearish euro positioning limited gains.

GBP/USD: 1.3321 (-0.05%)

GBP/USD slipped 0.05% to 1.3321 as UK fiscal uncertainty and a resilient U.S. dollar weighed on sterling.

Investors assessed the UK's budget outlook and Federal Reserve policy guidance, with concerns over government borrowing limiting sterling's recovery.

AUD/USD: 0.7052 (-0.03%)

AUD/USD edged down 0.03% to 0.7052 as cautious positioning following the Fed decision offset support from Australia's stronger inflation figures.

Australian quarterly inflation accelerated to 1.3% from 0.6%, while RBA Governor Michele Bullock indicated policymakers would reassess whether previous rate increases were sufficient to control inflation.

High-Impact Economic Events

Note: These economic events are for informational purposes only. Please conduct your own research before making any market decisions.

Note: These economic events are for informational purposes only. Please conduct your own research before making any market decisions.

Volatility

The VIX declined to 16.91 from 17.52 as U.S. equity gains and the Fed's rate hold eased uncertainty, while inflation concerns, central bank decisions and Middle East tensions sustained caution.

What Markets Are Watching

1. U.S. GDP, Core PCE Inflation & Federal Reserve Policy

Markets await U.S. third-quarter GDP and core PCE inflation data following the Federal Reserve's decision to maintain rates at 3.75% - 4.00%. Strong economic growth or persistent inflation could reinforce expectations of restrictive monetary policy, influencing Treasury yields, precious metals and the dollar.

2. ECB Decision, Global Central Banks & Currency Markets

The European Central Bank is expected to maintain its main refinancing rate at 2.65%, with investors assessing future policy guidance. The Bank of Japan's upcoming decision could also influence yen movements, while diverging central bank policies remain important for global currencies.

3. Middle East Diplomacy, Oil Supply & AI Earnings

Renewed U.S.-Iran diplomatic efforts pressured Brent as investors assessed the possibility of reduced supply disruptions. Meanwhile, major technology earnings and AI investment spending remained in focus, with corporate profitability and elevated valuations influencing equity sentiment.