Gold Holds Losses as Oil Prices Rise

2026-09-08 23:55 By Jam Kaimo Samonte 1 min. read

Gold held below $4,400 an ounce on Wednesday after sliding for two straight sessions, pressured by rising oil prices that heightened inflation concerns and strengthened expectations for interest rate hikes.

Oil prices continued to climb after US forces destroyed five Iranian crude tankers near Kharg Island, the country’s main oil export hub, in retaliation for attempted missile attacks on a US warship.

Investors also braced for key US inflation readings this week for further signals on the Federal Reserve’s next policy move.

Markets are currently pricing in roughly a 60% chance of a 25-basis-point rate hike next week.

Although gold is widely considered a hedge against inflation, higher interest rates can reduce demand for the non-yielding asset by increasing the appeal of interest-bearing investments.

Meanwhile, gold posted strong gains in August, supported by increased investment and hedging demand, along with continued central bank purchases, particularly from China.



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Gold Holds Losses as Oil Prices Rise
Gold held below $4,400 an ounce on Wednesday after sliding for two straight sessions, pressured by rising oil prices that heightened inflation concerns and strengthened expectations for interest rate hikes. Oil prices continued to climb after US forces destroyed five Iranian crude tankers near Kharg Island, the country’s main oil export hub, in retaliation for attempted missile attacks on a US warship. Investors also braced for key US inflation readings this week for further signals on the Federal Reserve’s next policy move. Markets are currently pricing in roughly a 60% chance of a 25-basis-point rate hike next week. Although gold is widely considered a hedge against inflation, higher interest rates can reduce demand for the non-yielding asset by increasing the appeal of interest-bearing investments. Meanwhile, gold posted strong gains in August, supported by increased investment and hedging demand, along with continued central bank purchases, particularly from China.
2026-09-08
Gold Holds Steady Ahead of Key US Inflation Data
Gold prices traded cautiously around $4,400 an ounce on Tuesday, caught between rising bets on a Federal Reserve rate hike and a softer dollar ahead of key US inflation data later this week. A further rise in oil prices also renewed inflation concerns. Oil extended gains to multi-week highs amid escalating Middle East tensions after Yemen’s Iran-backed Houthis attacked energy facilities and cities in Saudi Arabia, a key US ally. Meanwhile, Friday’s stronger-than-expected jobs report pointed to a strengthening labor market, prompting traders to price in about a 60% chance of a Fed rate hike at the September meeting. While gold is traditionally viewed as a hedge against inflation, higher interest rates tend to weigh on the appeal of the non-yielding asset. Investors now await producer price data on Thursday and consumer price figures on Friday for further clues on the Fed’s policy outlook.
2026-09-08
Gold Under Pressure from Rate Hike Bets
Gold slipped below $4,400 an ounce on Tuesday, extending losses from the previous session, pressured by expectations that major central banks will raise interest rates this month as elevated oil prices heighten inflation concerns. Markets are currently pricing in around a 60% probability that the US Federal Reserve will deliver a 25-basis-point rate hike next week following strong jobs data, with upcoming inflation figures expected to offer further clues. The European Central Bank and Bank of Japan are also widely expected to raise rates this month. Meanwhile, investors continued to monitor developments in the Middle East as renewed US-Iran fighting pushed oil prices higher. At the same time, gold could receive support from investment and hedging demand, with central bank purchases and the so-called debasement trade remaining key drivers for the precious metal.
2026-09-08