4 main reasons suppressing gram gold prices and latest market situation

While selling pressure stood out at the beginning of the new week in global markets, spot gold began trading at $4,140 and gram gold at 6,600 TL on October 20, 2026. Analysts listed the 4 main reasons suppressing gold prices as the rise in US bond yields, the Fed's interest rate hike probabilities, the weakening of safe-haven demand due to the recovery in tech stocks, and high oil prices.

Although spot gold rose to $4,190 during yesterday's trades, it retreated to $4,140 with a 0.59 percent loss due to profit-taking. While spot gold is currently priced at $4,142, short-term pullbacks occur as it approaches the $4,200 resistance. Analysts point to the $4,230 resistance, while $4,066 is indicated as the critical support level below. In the spot market, gram gold started the day at 6,600 TL as of October 20, 2026, delivering a 0.8 percent return in the remaining part of October.

Among the factors suppressing gold prices are the US 10-year bond yield exceeding the 5.10 percent level again and the strong course of the dollar index near 102. In the US, inflation rising by 0.6 percent monthly and 3.7 percent annually in September, alongside a 6.3 percent increase in producer prices, indicates that cost pressures persist. While markets expect interest rates to remain unchanged at the October meeting, they are pricing in a high probability of a new rate hike in December. On the other hand, purchases heading towards technology stocks with the Nasdaq rising by 1.1 percent weaken safe-haven demand, while oil prices hovering near $110 keep inflation and interest rate risks alive, holding back gold prices.