October 20, 2026
Market Overview 14-10-2026 to 20-10-2026
Precious Metals Market Faces the Threat of Rising Interest Rates
Although precious metals prices recorded only minor movements last week, there is no shortage of news that could have a more significant impact on the supply and demand of precious metals in the near future. Against the backdrop of the tense situation in the Middle East and the latest US economic data, further interest rate increases are expected in both the United States and European markets. The record rise in US government bond yields is contributing to increased investment competition and direct pressure on precious metal assets.
The global gold price recorded only minor changes between October 14 and October 20. On October 20, the gold price reached USD 4,119 per troy ounce.
Recently, rising bank interest rates have been creating significant pressure on gold investment assets. Following the Fed’s decision to raise US benchmark interest rates by 25 basis points (0.25 percentage points) in late September, expectations have been growing that US interest rates will be raised at least once more this year. These forecasts are also reinforced by indicators such as the 3.7% annual inflation rate recorded in the United States in September.
According to current market data, there is an almost 74% probability that the Fed will raise interest rates by 25 basis points at its December meeting, compared with their current level. There is also an almost 15% probability that Fed interest rates will be 50 basis points higher in December compared with the current rate.
Rising US interest rates are contributing to a strengthening dollar and a record surge in US government bond yields. These factors reduce the attractiveness of dollar-denominated precious metals to holders of foreign currencies.
Decisions in other developed markets are also creating direct competition for gold. According to the International Monetary Fund, the European Central Bank should raise interest rates at least once more this year. Further interest rate increases are also expected this year in the United Kingdom, Sweden and other developed markets. Rising interest rates directly contribute to higher bond yields and increase the competitive pressure from these assets on precious metals, which do not generate fixed income.
Between October 14 and October 20, the global silver price rose by more than 2.3%, reaching USD 56.93 per troy ounce.
Despite rising interest rates, silver price growth has recently been supported by both a recovery from more significant declines and geopolitical tensions in the Middle East. Prolonged military operations in the region are sustaining demand for precious metals as a form of investment protection.
As attacks continue against commercial vessels passing through the Strait of Hormuz and oil industry facilities in the Middle East, crude oil prices continue to rise, increasing the risk of high inflation and an economic crisis in international markets. Uncertainty surrounding the future of the global economy is encouraging investors to allocate part of their portfolios to the precious metals sector.
The global palladium price rose by more than 0.5% between October 14 and October 20, reaching USD 1,103 per troy ounce.
The platinum price rose by 2% over the same period, reaching USD 1,634 per troy ounce on October 20.
The global copper price fell by more than 0.5% between October 14 and October 20, reaching USD 14,354 per tonne.
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