Global Gold Prices Retreat as US Bond Yields Rise and Fed Rate Hike Odds Increase

Key summary

On October 20, 2026, global gold prices fell following a recovery in the US 10-year bond yield and an increased probability of a Federal Reserve rate hike. The CME Group's FedWatch Tool adjusted its forecast to 77.8% for a potential 0.25% rate increase at the December FOMC meeting. While New York markets showed risk-on sentiment driven by technology and AI stocks, gold prices tested resistance levels around $4,150 and $4,180 before settling near $4,140 per ounce. The SPDR fund sold 0.57 tons of gold. In Thailand, the price of gold bars dropped by 400 baht to a selling price of 65,850 baht per gram, with jewelry gold at 66,650 baht per gram. Analysts note that if gold breaks below the support level of $4,100, further declines are possible.