Gold prices have faced sustained selling pressure during the week of October 19, 2026, driven primarily by an oil price surge above $110 per barrel amid escalating Middle East tensions and Houthi attacks on Saudi energy infrastructure. This has amplified energy-led inflation concerns following hotter-than-expected September CPI (3.7% YoY) and PPI prints, reviving market-implied odds of a December Fed rate hike to around 73-90% while keeping October tightening probabilities low near 17%. The resulting rise in real yields and Treasury demand has outweighed gold’s traditional safe-haven appeal, pushing spot XAUUSD below the $4,075 October floor to test the $4,000 psychological level. Traders now focus on the October 27-28 FOMC meeting and the subsequent PCE release for clarity on the policy path.