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Gold Prices Dip Below $4,200 Amidst Rate Hike Fears, Geopolitical Tensions
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News18•29-09-2026, 10:05
Gold Prices Dip Below $4,200 Amidst Rate Hike Fears, Geopolitical Tensions
- •Gold prices are near a seven-week low, pressured by rising oil prices and expectations of prolonged high US interest rates.
- •US spot gold traded nearly flat at $4,124.57 per ounce, while US gold futures declined 0.3% to $4,156.70.
- •Geopolitical uncertainty in the Middle East supports gold as a safe haven but also drives up energy prices, fueling inflation concerns.
- •Analysts anticipate near-term volatility for gold and silver due to higher US yields and crude prices, potentially leading to further rate hikes.
- •Investors await key US economic data, including job openings, employment figures, and inflation data, to gauge the Federal Reserve's next policy move.
Key Questions Answered
Gold prices are being kept under pressure near a seven-week low due to rising oil prices and growing expectations of prolonged high US interest rates. Higher crude prices are raising inflation concerns, which increases the odds of a potential interest rate hike and makes non-yielding bullion less attractive.
According to the CME FedWatch Tool, financial markets are currently assigning a 70.3% probability that the Federal Reserve will implement a rate hike during its October policy decision.
Investors are closely watching several major US economic data releases this week, including job openings, ADP employment figures, personal consumption expenditures (PCE) inflation data, and nonfarm payroll reports.
