Precious Metal

Gold Rebounds Above $4,040 After Early Dip Below $4,000 as Silver Touches 11-Month Low Before Fed

Spot gold reversed from below $4,000 to a session high near $4,048 Tuesday after U.S. consumer confidence data, while silver touched an 11-month low ahead of Wednesday's Fed decision.

Oct 27, 2026 - 12:20

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Gold prices swung from losses to gains on Tuesday, October 27, 2026, dipping below $4,000 an ounce in the morning before rising to a session high after U.S. consumer confidence data, as the Federal Reserve opened a two-day policy meeting. Silver underperformed, touching its lowest level in about 11 months during Asian trading.

A morning slide, then a reversal

Early in the day, spot gold fell 0.4% to $4,000.52 an ounce by 10:42 GMT and U.S. gold futures for December delivery fell 0.6% to $4,014.40, Reuters reported, as the dollar index rose 0.3% to a nearly two-week high, making dollar-priced bullion more expensive for holders of other currencies. In early U.S. trading, the Kitco AM Report put spot gold near $3,994.60, down $21.60 or 0.54%, and spot silver near $52.75, down 2.03%.

BullionVault reported that gold was set around $3,997 at the 10:30 a.m. auction in London, the first time the price had fixed below $4,000 since July 20.

The direction changed after the Conference Board released its October consumer survey at 10 a.m. ET. The Consumer Confidence Index rose to 91.7 from an upwardly revised 84.2 in September, above the consensus forecast of 81, and spot gold was last trading at $4,048.48 an ounce, up 0.78% on the day, at session highs, Kitco News reported. FXStreet later reported gold trading around $4,056, after the metal had fallen to a three-month low of $3,975 last week, and attributed the support partly to a pullback in oil prices.

Silver at an 11-month low

Silver hit a fresh 11-month low of $52.68 an ounce in Asian trading overnight before recovering, according to BullionVault. Reuters reported spot silver down 1.3% at $53.23 in European trading, with platinum down 1.7% at $1,501.30 and palladium down 2.9% at $1,019.50. With gold outperforming, the gold-to-silver ratio rose to 74.3, the highest since November last year, BullionVault said.

The Kitco AM Report said silver has been more exposed than gold to concerns about manufacturing activity and industrial demand, particularly if high energy costs and restrictive monetary policy weigh on economic growth.

Fed, yields and the oil link

The Fed is widely expected to leave its benchmark rate unchanged at 3.75% to 4.00% when its October 27-28 meeting ends on Wednesday, but traders were pricing in an 82% probability of a rate increase in December, according to the CME FedWatch Tool cited by Reuters. Higher interest rates increase the opportunity cost of holding gold, which pays no yield.

"Gold remains under pressure from a stronger US dollar and elevated Treasury yields, as persistent inflation concerns, driven by high oil prices, reinforce expectations that the Federal Reserve will maintain a restrictive monetary policy stance," said Ricardo Evangelista, director and CEO at ActivTrades, as quoted by Reuters.

The benchmark 10-year Treasury yield was near 4.98% on Tuesday morning, below recent highs, according to Kitco. The Kitco report noted that September consumer prices rose 0.6% on the month and 3.7% from a year earlier, while producer prices climbed 1.3% and 6.3%, respectively.

The Fed announces its decision at 2 p.m. ET Wednesday, followed by Chair Kevin Warsh's news conference at 2:30 p.m. ET. Thursday brings the advance estimate of third-quarter gross domestic product and September personal consumption expenditures inflation data, the measure the Fed watches most closely as it targets 2% inflation. The European Central Bank is expected to leave rates unchanged on Thursday, and the Bank of Japan meets after the Fed, Reuters said.

Diverging demand: China buyers and Western ETFs

BullionVault, citing Bloomberg News, reported that retail gold investment demand in China has strengthened as prices have fallen, with strong buying during this month's Golden Week holidays. In contrast, gold-backed exchange-traded funds recorded their first weekly liquidation in a month last week, according to World Gold Council data cited by BullionVault, as heavy selling of North American-listed funds outweighed inflows in Asia and Europe. The 13-tonne reduction was the largest weekly outflow from gold ETFs worldwide since late June, BullionVault said, adding that the large New York-listed GLD and IAU funds shrank again on Monday.

BullionVault also noted that the yield on 10-year inflation-protected U.S. Treasury securities fell to 2.64%, matching last Thursday's one-month low.

In India, gold on the MCX traded around ₹142,900, down 0.12%, while the rupee weakened for a third consecutive session to around 95.14 per dollar, BusinessLine reported earlier on Tuesday.