Gold Prices Stabilize Amid Oil Price Surge and Strong U.S. Economic Data

Gold prices stabilized following a selloff supported by movements in oil prices and strong U.S. economic data, which lifted bets on Federal Reserve rate hikes. Spot gold fell by 0.3% to $4,275.09 an ounce, while gold futures declined by 0.2% to $4,310.60 an ounce. Benchmark Brent oil prices rose above $100 a barrel, as hopes for an imminent diplomatic resolution to the Iran war faded. The U.S. business activity expanded at its fastest pace in more than five years in September, according to data. At its September meeting, the Federal Reserve raised rates by 25 basis points to address mounting inflation. Traders now see a roughly 77.5% probability of a rate hike in October, up from 55.4% a week prior, and over 58% for December, compared to 41.7% the previous week. The benchmark U.S. 10-year Treasury yield logged its biggest jump since April 2025, reflecting the market's reaction to the Fed's policy. Iranian President Masoud Pezeshkian told the United Nations that Iran would not allow freedom of navigation through the Strait of Hormuz while a U.S. blockade and sanctions remain in place. President Donald Trump's team held "very good" talks with Iranian envoys on the sidelines of the United Nations General Assembly gathering, though he earlier threatened Iran with "annihilation." Analysts noted that a broader deal or concessions at an upcoming summit between Trump and Chinese President Xi Jinping could lift metals prices, while a breakdown would revive tariff risk.