Gold Holds Decline Ahead of US CPI Data

2026-09-11 00:13 By Jam Kaimo Samonte 1 min. read

Gold traded near $4,300 an ounce on Friday after falling nearly 2% in the previous session, as investors braced for the US consumer price index report that could reinforce expectations for a Federal Reserve rate hike next week.

Data released Thursday showed US producer prices accelerated in August as the Iran war pushed wholesale energy costs higher.

Markets are now pricing in roughly a 71% probability of a 25-basis-point Fed rate increase next week, up from 61% before the PPI data.

Gold also faced pressure from surging oil prices amid the escalating US-Iran conflict, fueling concerns over rising inflation.

Meanwhile, Treasury yields jumped following lower-than-expected purchases by the US Treasury Department during its first expanded buyback operation.

Non-interest-bearing assets such as gold tend to underperform when yields rise.

Gold is on track to lose more than 2% this week, marking its third straight weekly decline.



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Gold Holds Decline Ahead of US CPI Data
Gold traded near $4,300 an ounce on Friday after falling nearly 2% in the previous session, as investors braced for the US consumer price index report that could reinforce expectations for a Federal Reserve rate hike next week. Data released Thursday showed US producer prices accelerated in August as the Iran war pushed wholesale energy costs higher. Markets are now pricing in roughly a 71% probability of a 25-basis-point Fed rate increase next week, up from 61% before the PPI data. Gold also faced pressure from surging oil prices amid the escalating US-Iran conflict, fueling concerns over rising inflation. Meanwhile, Treasury yields jumped following lower-than-expected purchases by the US Treasury Department during its first expanded buyback operation. Non-interest-bearing assets such as gold tend to underperform when yields rise. Gold is on track to lose more than 2% this week, marking its third straight weekly decline.
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Gold Slides as Strong PPI Fuels Fed Rate Hike Bets
Gold fell to around $4,350 an ounce on Thursday as traders increased bets on a Federal Reserve rate hike next week following stronger-than-expected US producer price data. US PPI rose 0.4% in August, while annual producer inflation accelerated to 5.4%, above the 5.3% forecast, reflecting a surge in energy prices, alongside signs of greater cost pass-through across broader sectors. The data coincided with a fresh rally in oil prices amid escalating US-Iran strikes in the Middle East, prompting investors to price in a more than 70% probability of a Federal Reserve rate hike on September 16. Meanwhile, traders also raised bets on further ECB tightening after the central bank delivered an expected rate hike and warned that inflation risks remained tilted to the upside.
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Gold Extends Gain Ahead of US Inflation Data
Gold rose above $4,400 an ounce on Thursday, extending gains from the previous session as investors awaited key US inflation readings that could provide further insight into the Federal Reserve’s next policy move. The US producer price index report for August is due later today, followed by the consumer inflation report on Friday. The metal found support from a weaker dollar, as well as continued demand for its long-term hedging appeal despite near-term pressure from higher oil prices and bond yields. Oil prices climbed to multi-month highs as the US-Iran conflict intensified, stoking inflation concerns and strengthening expectations for near-term rate hikes. US Treasury yields also moved higher after the Treasury Department announced plans to buy back up to $6 billion in longer-term debt, disappointing some investors who had expected a more substantial increase.
2026-09-09