Gold Price Pressure

Gold Prices Edge Lower as Rising Oil and Treasury Yields Weigh on Bullion

Gold prices slipped on Thursday following a sharp selloff in the previous session, as higher oil prices, a stronger U.S. dollar, and rising Treasury yields continued to pressure the precious metal. Investors are also reassessing the likelihood of further Federal Reserve interest rate hikes amid persistent inflation concerns.

As of 12:58 WIB, spot gold (XAU/USD) was down 0.2% at $4,281.13 per ounce, while U.S. gold futures declined 0.1% to $4,315.55. Silver fell 0.6% to $64.09 per ounce, while platinum gained 0.3% to $1,758.69 and palladium advanced 0.4% to $1,273.79. The U.S. Dollar Index remained largely unchanged at 101.13.

Oil Prices Rise as Iran Tensions Cloud Peace Prospects

Gold remains highly sensitive to Federal Reserve policy expectations, with investors closely monitoring whether elevated energy prices could keep inflation high enough to justify additional interest rate increases. Higher rates typically weigh on gold because the metal does not generate yield.

Oil prices moved higher after Iranian President Masoud Pezeshkian told the United Nations that Iran would not allow unrestricted navigation through the Strait of Hormuz while U.S. sanctions and blockades remain in place.

His remarks highlighted the challenges facing diplomatic efforts between Tehran and Washington, despite renewed negotiations taking place this week.

Pezeshkian reiterated that Iran remains open to negotiations but would not respond to threats. He also stated that Tehran is not pursuing nuclear weapons while emphasizing that the country will not abandon its right to develop nuclear technology for economic purposes.

The comments came a day after U.S. President Donald Trump said American officials had held “very good” discussions with Iranian representatives on the sidelines of the United Nations summit.

Gold has fallen roughly 20% since the outbreak of the U.S.-Iran conflict in late February, with energy prices and Federal Reserve policy expectations remaining the primary drivers of market sentiment.

Strong U.S. Data and Treasury Selloff Reinforce Rate Pressure

The U.S. Treasury market remained under pressure following stronger-than-expected economic data and weak government debt auctions. The move has strengthened expectations that inflation could remain elevated, pushing yields across much of the curve to their highest levels in nearly two decades.

The benchmark U.S. five-year Treasury yield climbed above 5% for the first time since 2007, creating an additional headwind for non-yielding assets such as gold.

Meanwhile, U.S. business activity expanded at its fastest pace in more than five years. Federal Reserve Governor Michael Barr indicated that further interest rate increases may be necessary to bring inflation back to the central bank’s 2% target. His comments echoed similar warnings from other policymakers who continue to view inflationary pressures as persistent.

Interest-rate swaps now suggest markets are pricing in at least three additional Federal Reserve rate hikes by April next year, a notable increase from expectations earlier this week.

Gold Outlook Remains Challenging

Despite near-term weakness, gold continues to receive support from long-term demand fundamentals. However, stronger economic growth, rising Treasury yields, elevated oil prices, and a firmer U.S. dollar are currently limiting the precious metal’s upside potential and keeping pressure on bullion prices in the short term.

Share:

Read More

Gold Prices Decline

Gold Prices Slip as Stronger US Dollar and Higher Rate Expectations Weigh

Gold prices declined on Wednesday as a stronger US dollar and expectations of prolonged higher interest rates continued to pressure the precious metal. Investors remained focused on inflation risks and the possibility of additional monetary tightening by the Federal Reserve.

At 16:53 GMT, spot gold fell 0.9% to $4,318.05 per ounce, while gold futures eased 0.5% to $4,354.90 per ounce.

Meanwhile, the US Dollar Index (DXY), which measures the greenback against a basket of major currencies, rose 0.1% to 100.71, reaching its highest level since July 30. A stronger dollar typically makes gold more expensive for holders of other currencies, reducing international demand.

“US dollar has become the preferred safe-haven asset for investors during periods of uncertainty,” said David Morrison, Senior Market Analyst at Trade Nation, in a market note.

The greenback also found support from expectations that the Federal Reserve may maintain a restrictive monetary policy stance to combat persistent inflationary pressures, particularly those linked to elevated energy costs. Although crude oil prices have retreated below $100 per barrel amid easing concerns over Middle East supply disruptions and renewed diplomatic efforts, oil remains more than 60% higher than at the start of the year.

Last week, the Federal Reserve raised its benchmark interest rate by 25 basis points. Fed Chair Kevin Warsh signaled that further rate increases could be necessary in the coming months if inflation remains elevated. Additional comments from St. Louis Fed President Alberto Musalem and Chicago Fed President Austan Goolsbee also pointed to the possibility of more policy tightening to bring inflation under control.

Analysts at ANZ noted that gold has been trading within a relatively narrow range as investors balance the prospect of further rate hikes against growing investment demand for the precious metal.

According to ANZ, China’s gold imports reached approximately 1,000 metric tons during the first eight months of 2026. Chinese gold-backed exchange-traded funds (ETFs) added around 44 tons in August, while the People’s Bank of China accelerated its purchases, acquiring roughly 20 tons during the same month.

Get 50% off InvestingPro and stay ahead of market-moving trends with advanced data, expert insights, and powerful investing tools.

Share:

Read More

Gold Prices Rise

 

Gold Prices Rise as Oil Slump Eases Inflation Concerns, Trump Signals Iran Talks

Gold prices edged higher on Tuesday after crude oil prices fell more than 9% over the previous four trading sessions, easing inflation concerns and reducing expectations for further aggressive interest rate hikes by the Federal Reserve.

A weaker U.S. dollar and renewed optimism surrounding potential diplomatic engagement between the United States and Iran also supported bullion prices, although Federal Reserve officials remain divided over the future path of monetary policy.

As of 09:04 WIB, spot gold (XAU/USD) climbed 0.4% to $4,359.40 per ounce, while Gold Futures gained 0.3% to $4,396.85 per ounce. Silver (XAG/USD) advanced 0.6% to $66.43 per ounce, and platinum (XPT/USD) rose 0.3% to $1,809.03 per ounce. Meanwhile, the U.S. Dollar Index slipped 0.03% to 100.39.

Oil Price Decline Reduces Inflation Pressure

Gold rebounded from Monday’s losses after posting its largest daily decline in a week. The recovery came as oil prices stabilized following a sharp four-session selloff of more than 9%, helping to ease inflationary pressures that had recently weighed on financial markets.

Lower energy prices have also tempered expectations that the Federal Reserve will need to tighten monetary policy further. Gold typically benefits from lower interest rate expectations because the precious metal does not generate yield.

Market sentiment was further supported by renewed diplomatic developments involving the United States and Iran. U.S. President Donald Trump is scheduled to address the United Nations General Assembly in New York on Tuesday and has signaled openness to meeting Iranian President Masoud Pezeshkian on the sidelines of the event.

The renewed diplomatic focus follows months of geopolitical tensions and disruptions to energy supplies in the Middle East. Any improvement in oil supply prospects could further alleviate inflation concerns and support investor sentiment.

Fed Officials Send Mixed Interest Rate Signals

Investors are also closely monitoring comments from Federal Reserve officials after the central bank unanimously approved a 25-basis-point interest rate increase last week, marking its first rate hike in three years.

Chicago Federal Reserve President Austan Goolsbee stated that policymakers cannot simply ignore recurring and persistent supply shocks, emphasizing the need for a response even if it results in economic challenges.

Meanwhile, St. Louis Federal Reserve President Alberto Musalem said additional rate hikes may still be necessary to bring inflation back to the Fed’s target level, which has remained unmet for more than five years.

Gold prices came under pressure on Monday as markets priced in the possibility of further Fed tightening later this year, while hawkish signals from other major central banks helped strengthen the U.S. dollar.

Despite near-term headwinds, investment demand for gold remains robust. Approximately 50 metric tons of gold flowed into physically backed gold exchange-traded funds (ETFs) during September, putting the sector on track to record a third consecutive month of inflows and highlighting continued investor interest in the precious metal.

Share:

Read More