Gold Falls Below 6,300 Turkish Lira per Gram as Fed Holds Rates

Gold prices fell sharply in Turkey on October 31, 2026, as global markets continued a downward trend that gained strength in recent days. The gram price dropped below the 6,300 Turkish lira level, with the sales price recorded at 6,222.90 lira. The quarter gold price stood at 10,169.63 lira.

The decline was linked to strong U.S. economic growth and persistent inflation, which reinforced expectations that the Federal Reserve would keep interest rates high or even raise them again. Because gold pays no interest, higher rates make it less attractive to investors and reduce international demand.

“Inflation has stayed above target for about six years, and price stability is the bank's responsibility.”

Rising oil prices added pressure by raising concerns that energy costs could reignite global inflation and make central banks less likely to cut rates. At the same time, a global sell-off in technology and artificial intelligence stocks pushed investors to convert some assets into cash, affecting gold despite its safe-haven status.

The Federal Reserve kept its policy rate steady at 3.75 to 4 percent while warning that inflation remains above target. Fed Chair Kevin Warsh said inflation has stayed above target for about six years and stressed that price stability is the bank's responsibility.

For October as a whole, the ounce price of gold lost about 6.87 percent, showing the decline was more than a one-day move. The ounce price reached its lowest level in one year during the week at 3,870.30 dollars.

U.S. 10-year Treasury yields fell seven basis points weekly to 4.93 percent, while the dollar index moved sideways at 101.9. Analysts said investors may have sold gold to cover rising margin requirements from losses in other markets.