Gold Rebounds 2% as Investors Reassess Fed Rate Hike

2026-09-17 12:52 By Joana Ferreira 1 min. read

Gold climbed 2% to around $4,360 an ounce on Thursday, recovering from a near six-week low touched on Wednesday, as investors reassessed their positions following the US Federal Reserve’s first rate hike in three years.

The dollar retreated from a seven-week high reached after US policymakers raised rates and signaled further hikes in the coming months, with Chief Kevin Warsh joining the unanimous decision and underscoring policymakers’ concerns that inflation remains elevated.

While gold is traditionally viewed as a hedge against inflation, higher interest rates tend to reduce its appeal by increasing the attractiveness of interest-bearing assets.

Elsewhere, the Bank of England kept interest rates unchanged on Thursday, while the Bank of Japan is widely expected to raise rates to a 31-year high on Friday.

Meanwhile, oil prices extended their decline as concerns over supply disruptions eased, while US President Trump said he hoped an end to the war with Iran was near.



News Stream
Gold Edges Higher as Dollar Weakens
Gold prices edged higher to around $3,940 an ounce on Wednesday, supported by a weaker US dollar and falling Treasury yields as early US midterm results pointed to Democrats gaining ground in both chambers of Congress. Markets interpreted the results as potentially increasing the likelihood of political gridlock in Washington and limiting prospects for further fiscal expansion. Meanwhile, easing oil prices amid hopes of continued US-Iran diplomacy helped alleviate inflation concerns, although Tehran and Washington remained far from a deal to end their conflict. President Donald Trump declined to rule out renewed US military operations following the elections. Separately, investors awaited Friday's US nonfarm payrolls report for further clues on the Federal Reserve's policy outlook. Markets currently price in a 78% chance of a Fed rate hike in December, keeping expectations of restrictive monetary policy a potential headwind for non-yielding metals
2026-11-04
Gold Climbs as Oil Slump Eases Inflation Fears
Gold prices recovered to around $3,965 an ounce on Tuesday, erasing early losses and extending Monday’s 2% gain, as investors welcomed a fresh decline in oil prices ahead of the US midterm elections. Oil reversed earlier gains after President Donald Trump said the US would end its $4 billion aid programme to Israel by year-end. Meanwhile, US Energy Secretary Chris Wright said overnight strikes on Iran’s Qeshm Island had not disrupted regional oil supplies. Lower oil prices could ease inflationary pressures and reduce expectations of further central bank rate hikes. Markets currently price in nearly a 75% chance of a Fed rate hike in December, according to CME’s FedWatch Tool. Meanwhile, US midterm elections are underway, with control of the House and Senate remaining a key focus for investors. Separately, the World Gold Council lowered its forecast for gold investment growth this year to 200 metric tons from 400 tons, while raising its estimate for central bank purchases.
2026-11-03
Gold Resumes Decline
Gold prices fell toward $3,900 per ounce on Tuesday, surrendering gains from the previous session as oil prices rebounded following reports of a US strike on Iran’s Qeshm Island, heightening concerns over renewed inflationary pressures. Investors also turned cautious ahead of the US midterm elections, which will determine control of both chambers of Congress, with a potential Democratic takeover adding to market uncertainty. Meanwhile, renewed selling pressure in technology and artificial intelligence stocks further weighed on gold, as widespread liquidations across financial markets continued to affect precious metals. Investors also kept a close watch on developments in US-Iran negotiations for signs of diplomatic progress. An Iranian spokesperson said that "the ball is in the US court" regarding a potential agreement to end the conflict, while President Donald Trump stated in a social media post that Iran was eager to reach a settlement as soon as possible.
2026-11-03