Gold Climbs on Weaker Dollar and Oil Slump as Fed Policy Outlook Looms

Gold prices rise on weaker dollar and lower oil, with investors eyeing key US inflation data for Fed policy clues.

October 12, 2026 One Min Read

POLICY WIRE — New York, United States — Gold prices advanced this week, fueled by a weaker U.S. dollar and declining oil costs, as market participants closely monitor upcoming inflation figures for insight into the Federal Reserve’s potential next steps.

On Thursday, gold dipped over 1% following stronger-than-expected U.S. inflation readings and rising energy costs, which stoked speculation about an imminent rate increase from the central bank. However, the metal later rebounded, gaining more than 2% on Thursday due to a softer dollar and easing oil prices.

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Investors remain focused on key economic indicators, including inflation data and potential interest-rate decisions, as expectations for a more cautious Federal Reserve path have grown. The precious metal has seen a significant surge this year, climbing nearly 57% amid geopolitical tensions, economic uncertainty, and central bank purchases.

Reporting by Policy-Wire (PW)

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