Gold Pressured by Fed Rate Hike Bets

2026-09-01 00:41 By Jam Kaimo Samonte 1 min. read

Gold traded below $4,450 an ounce on Tuesday, hovering near two-week lows as rising oil prices and hawkish remarks from Federal Reserve Chair Kevin Warsh strengthened expectations for a US rate hike this month.

Oil prices advanced for a second straight session after US forces struck an island in the Strait of Hormuz, while Iran responded with attacks on the UAE and Jordan.

Higher energy costs stoked inflation concerns, strengthening the case for a near-term Fed rate increase, which is typically negative for bullion.

Meanwhile, Chair Warsh said the Fed would “have work to do” without clearer evidence that inflation is moving back toward its 2% target.

Markets are now pricing in a more than 65% chance of a September hike, up from around 36% before his remarks.

Despite the recent decline, gold still gained about 10% in August after the US Treasury announced plans to double liquidity-support buybacks of longer-dated bonds, reviving the so-called debasement trade.



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Gold Pressured by Fed Rate Hike Bets
Gold traded below $4,450 an ounce on Tuesday, hovering near two-week lows as rising oil prices and hawkish remarks from Federal Reserve Chair Kevin Warsh strengthened expectations for a US rate hike this month. Oil prices advanced for a second straight session after US forces struck an island in the Strait of Hormuz, while Iran responded with attacks on the UAE and Jordan. Higher energy costs stoked inflation concerns, strengthening the case for a near-term Fed rate increase, which is typically negative for bullion. Meanwhile, Chair Warsh said the Fed would “have work to do” without clearer evidence that inflation is moving back toward its 2% target. Markets are now pricing in a more than 65% chance of a September hike, up from around 36% before his remarks. Despite the recent decline, gold still gained about 10% in August after the US Treasury announced plans to double liquidity-support buybacks of longer-dated bonds, reviving the so-called debasement trade.
2026-09-01
Gold Nears Two-Week Low as Fed Hike Bets Rise
Gold traded around $4,440 an ounce on Monday, near a two-week low, as renewed Middle East tensions fueled inflation concerns while hawkish comments from Federal Reserve Chair Kevin Warsh strengthened expectations for a September rate hike. Bullion fell more than 3% on Friday, its biggest one-day drop since June 10, after Warsh warned the Fed would “have work to do” without clearer evidence that inflation is returning to its 2% target. Markets now price in just over a 60% chance of a September hike, up from about 36% before his remarks, according to the CME FedWatch Tool. Oil prices also jumped after the US said it attacked an Iranian island in the Strait of Hormuz, prompting a response from Tehran. Despite the pullback, gold remains up around 10% this month, its strongest monthly gain since January, after the US Treasury announced plans to double liquidity-support buybacks of longer-dated bonds, stoking concerns over currency debasement.
2026-08-31
Gold Extends Fall on Fed Rate Hike Bets
Gold fell below $4,450 an ounce on Monday, extending a sharp drop in the previous session as hawkish remarks from Federal Reserve Chair Kevin Warsh revived expectations for an imminent interest rate hike. In his Jackson Hole address on Friday, Warsh warned that inflation is not easing significantly and reaffirmed the central bank’s commitment to bringing inflation back to its 2% target, while noting that financial conditions are not currently restrictive. Markets are now pricing in around a 57% chance of a 25-basis-point Fed rate hike in September, up sharply from roughly 40% a week earlier. Gold also remained pressured by rising oil prices after the US military targeted Iranian rocket launchers preparing to deploy mines into the Strait of Hormuz, marking the first such attack in more than a month. Still, the metal is on track to gain over 10% for the August, driven in large part by the so-called debasement trade.
2026-08-31