Gold Falls 1.2% and Platinum Drops 3.6% as U.S. GDP and PCE Data Lift Bets on a December Fed Rate Hike

Gold prices fell on Thursday, October 29, 2026, and silver and platinum posted steeper losses, after U.S. data showed faster-than-expected economic growth and elevated inflation, reinforcing expectations that the Federal Reserve could raise interest rates again in December.

Prices at midday

As of 12:08 p.m. ET, Kitco's spot quotes showed:

• Gold bid at $4,019.20 an ounce, down $47.40, or 1.17%, in a range of $4,015.30 to $4,069.90.
• Silver bid at $52.35, down $1.49, or 2.78%.
• Platinum bid at $1,481, down $55, or 3.58%.
• Palladium bid at $988, down $7, or 0.70%.

In futures trading, December gold was at $4,035.70, down about 0.4%, and silver futures were at $52.585, down about 2%, as of about 11:59 a.m. ET, according to Yahoo Finance quote data.

Earlier, Reuters reported in a story published by CNBC that spot gold was down 1% at $4,026.12 an ounce, while spot silver fell 2.7% to $52.54, platinum dropped 3.7% to $1,486.47 and palladium slid 0.7% to $1,003.58. Gold was on track for its second straight monthly decline, and silver, platinum and palladium were each headed for a second straight monthly decline as well, according to the report.

Growth and inflation data

The Commerce Department's advance estimate showed gross domestic product grew at a 3.4% annualized rate in the third quarter, above expectations and up from 2.2% in the second quarter, Kitco News reported. Consumer spending increased 3.8%, while fixed investment surged 19.4%, reflecting substantial business investment, particularly in artificial intelligence-related infrastructure, Kitco said.

The personal consumption expenditures price index rose 0.5% in September, its largest monthly gain in six months, and the annual rate accelerated to 3.6% from 3.4% in August, according to Kitco. Core PCE, which excludes food and energy, rose 0.3% on the month, and the annual core rate increased to 3.1% from 3.0%. CNBC reported that gasoline and other energy goods rose 9.2% in September.

"A stubbornly high inflationary outlook that continues to run hotter than Fed targets is paving the way for thoughts that the Fed will raise rates at the December meeting," David Meger, director of metals trading at High Ridge Futures, said, according to the Reuters report. He added that "today's PCE report did nothing to allay that fear."

Fed and rate expectations

The Federal Open Market Committee voted 10-2 on Wednesday to hold its benchmark rate at 3.75% to 4.00%, with Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack favoring a 25-basis-point increase, Kitco reported. Traders were pricing about an 83% chance of a December rate hike, according to CME Group's FedWatch tool, Reuters said. Kitco said the Fed's next meeting is December 8-9.

Higher interest rates increase the opportunity cost of holding gold, which pays no yield, the Reuters report noted. The benchmark 10-year Treasury yield was about 4.995% as of 11:54 a.m. ET, down from 5.045% at the previous close, and the U.S. Dollar Index was down about 0.19%, according to Yahoo Finance data. Kitco noted that the 10-year yield had risen to approximately 5.044% on Wednesday.

Kitco's morning report said silver "has suffered heavier selling pressure as concerns about restrictive monetary policy and industrial demand compound the broader precious metals weakness."

Energy and geopolitics

Meger said the energy market is "a large portion of those inflationary concerns," adding that "any type of escalation or de-escalation in the Middle East that would result in higher or lower energy prices potentially has a significant effect on metals prices." Kitco noted that U.S. Vice President JD Vance has sought to revive negotiations with Iran by sending a letter to Iranian national security chief Mohsen Rezaei, and that Qatari mediators presented a new proposal that a senior Iranian official dismissed as unacceptable. Kitco also reported that Saudi air defenses intercepted a missile aimed at the kingdom's Eastern Province.

Investors are also watching the November 3 U.S. elections, Reuters reported. In Europe, the European Central Bank kept interest rates unchanged on Thursday, and President Christine Lagarde will step down from her role on February 7, the central bank said, according to the same report.

Spot and futures prices are intraday figures and may change through the trading day.