Commodities: High Interest Rates Weigh on Gold Prices

Even though there is currently a slight countertrend, rising interest rates are weighing on gold. Gold ETCs, however, remain popular. Oil ETCs are also well received, though not on a large scale. November 5, 2026. FRANKFURT (Deutsche Börse). The price of gold is making a comeback: The Republicans’ significant defeat in Tuesday’s U.S. midterm elections has sparked a small rebound in the price of gold. This is because the U.S. dollar weakened and yields on U.S. Treasury bonds fell—both of which support the price of gold.On October 30, the price per troy ounce had fallen to $3,866, the lowest level in about a year. On Thursday morning, it stood at $4,058 again. However, that is still well below the all-time high of $5,570 reached in January. According to Mobeen Tahir of WisdomTree, much of the price correction is now over. “The U.S. interest rate hike in September appears to be more of a partial reversal of last year’s easing than the start of a new rate-hiking cycle,” he says. In the longer term, there are still many factors pointing in gold’s favor: concerns about the sustainability of public finances, rising debt service costs, and the ongoing diversification efforts by central banks. Subdued Demand for GoldGlobal demand for gold fell slightly in the third quarter, coming in at 1,369 metric tons—1 percent below the previous year’s figure—according to the latest report from the World Gold Council. Central banks and other official institutions increased their reserves by a net 321 metric tons—a 42 percent increase compared with the same period last year. In addition, physically backed gold ETCs saw inflows again, marking a significant reversal of the trend from the second quarter. However, demand for bars and coins fell by 19 percent compared with the same period last year. Furthermore, high prices weighed on jewelry demand. High-Volume Gold ETCsIn October, precious metal ETCs once again saw strong inflows, according to issuer WisdomTree. Much of the trading in ETFs and ETCs revolves around gold and silver. Ivo Orlemann of ICF Bank reports “almost exclusively purchases” for the Invesco Physical Gold EUR Hedged ( ) and the WisdomTree Physical Swiss Gold ( ), as well as for the WisdomTree Physical Silver (JE00B1VS3333). There’s also a lot of activity at Lang & Schwarz, particularly in Xetra-Gold ( ) and the WisdomTree Silver 3x Daily Leveraged ( ).Ivo Orlemann The top performers in terms of trading volume in ETC trading on Xetra continue to be gold price trackers, such as Xetra-Gold (DE000A0S9GB0) or ETCs from iShares (IE00B4ND3602), Xtrackers (DE000A1EK0G3), or Invesco (IE00B579F325). Silver ETCs also show high trading volumes, such as those from WisdomTree ( ). Xetra-Gold’s gold holdings have risen again. They currently stand at 177 metric tons, up from just under 173 metric tons at the end of 2025.Brent Price Slips Below $100The price of oil continues to be influenced by events in the Middle East. It has recently fallen sharply—following the Republicans’ election defeat, renewed U.S. attacks on Iran are now considered less likely. Two weeks ago, a barrel of Brent was still trading at over $117; it currently stands at $94.According to WisdomTree, energy ETCs were in demand in October, albeit not on a large scale. “When it comes to energy, this month is all about dwindling buffers ahead of winter,” reports Tahir, referring to European natural gas storage facilities. While there is reportedly enough gas for the winter, the margin for error is slim should the weather turn cold or should LNG deliveries fall short of expectations. Regarding oil, he describes a “mixed picture”: While supply from the Middle East is recovering somewhat, attacks on shipping routes continue.In trading, these fluctuations are driving strong volume in oil ETCs and ETNs. Among clients of Lang & Schwarz and ICF Bank, WisdomTree ETNs with 3x leverage are very popular, such as the WisdomTree Brent Crude Oil 3x Daily Leveraged ( ) and its short variant ( ). Copper Price Weakens After Record HighPrices for many industrial metals are trading sideways at high levels. Copper ( ) reached a new all-time high of $14,826 in September; as of Thursday morning, it still stands at $14,010. The situation is similar for aluminum ( ) and zinc ( ). WisdomTree reports slight outflows from industrial metal ETCs in October. The WisdomTree Copper (GB00B15KXQ89) is seeing particularly strong trading volume. By Anna-Maria Borse, November 5, 2026, © Deutsche Börse AG About the Author Anna-Maria Borse is a finance and business editor specializing in financial markets, the stock market, and economic issues.Feedback and questions to live@deutsche-boerse.com

Commodities: High Interest Rates Weigh on Gold Prices

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