Gold prices fell to their lowest level in seven weeks amid rising U.S. bond yields and expectations of another interest-rate hike by the U.S. Federal Reserve. Bloomberg reported this, writes UNN.
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Gold fell by 4% on Monday, after which it traded near $4,125 per ounce. Overall, since the beginning of September, the precious metal has lost about 7%.
Pressure on gold intensified as energy prices rose due to the standoff between the United States and Iran over the Strait of Hormuz. U.S. President Donald Trump rejected Tehran’s latest proposal, heightening fears of a prolonged energy shock and inflation.
Investors await a new Fed decision
Against this backdrop, U.S. Treasury yields rose, with the yield on 10-year notes reaching a new 19-year high. Higher bond yields reduce the appeal of gold, which does not generate interest income itself.
In September, the Fed raised its interest rate for the first time since 2023 and allowed for further tightening of monetary policy. Investors currently assess the probability of another rate hike in October at approximately 70%.
The next market indicators will be data on consumer spending and inflation in the United States, as well as labor-market statistics, which may influence the Fed’s subsequent decisions.
Gold fell to $4,262 per ounce after dropping more than 2% over the week28.09.26, 05:55