Gold's rate-hike problem

Investors turned on gold in October as they braced for higher interest rates. On Friday, gold traded at about $3,956 an ounce after briefly falling to its lowest price since June 30. Silver also sank to its weakest level since November 2025.

Stronger-than-expected U.S. growth and rising oil prices are both weighing on gold, according to UBS analyst Giovanni Staunovo. Pricier oil is "putting pressure on the Fed to hike further interest rates," he said. Economists reportedly expect another hike in December.

U.S. crude now sells for more than $100 a barrel, up from under $70 before the war with Iran began. Oil prices rose again on Friday after a tanker was attacked in the Strait of Hormuz. Investors tend to shy away from gold, which pays no interest, when they expect borrowing costs to remain high.

Central bankers are worried about oil, too. The Fed and the European Central Bank both left rates alone last week, but each warned that pricier energy could push inflation higher.

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Americans are spending more of their money just to cover the basics. Housing and food took a bigger share of their budgets in 2025 than in any of the past 15 years, according to Bureau of Labor Statistics data, accounting for 33.9% and 13% of the average household's spending.

Higher shelter costs drove most of the rise in housing bills. Housing spending grew 5.8%, faster than the 4.3% rise in spending overall. Spending on rent alone jumped 10.8%.

Meat, poultry, fish, and eggs are behind nearly all of the rise in grocery bills. Those food groups reportedly accounted for about 95% of the increase in a typical household's grocery spending from 2023 to 2025. Their share of the grocery bill grew to about 24% from 19%.

These figures only cover 2025, before this year's jump in prices. The Iran war has reportedly pushed up what families pay for some groceries and utilities. Inflation climbed to 3.7% in September, up from 2.6% last year.

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