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Gold Rises as Lower Oil Prices Dampen Fed Rate Hike Expectations
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Moneycontrol•22-09-2026, 07:04
Gold Rises as Lower Oil Prices Dampen Fed Rate Hike Expectations
- •Gold prices edged higher, trading around $4,360 an ounce, as a slump in oil prices reduced the likelihood of further Federal Reserve interest-rate hikes.
- •Oil prices steadied after a 9% drop over four days, easing concerns about Middle East exports and renewed diplomacy efforts between the US and Iran.
- •President Donald Trump is expected to address the United Nations General Assembly and has indicated openness to meeting Iranian counterpart Masoud Pezeshkian.
- •Lower oil prices reduce inflationary concerns, providing a tailwind for gold, which typically benefits from lower interest rates.
- •Investors are also monitoring comments from Fed officials regarding future rate paths and the upcoming summit between Trump and Chinese President Xi Jinping.
Key Questions Answered
A slump in oil prices reduced inflationary concerns, which in turn dampened the likelihood of further interest-rate hikes by the Federal Reserve and helped gold edge higher to around $4,360 an ounce.
Confidence in the long-term outlook for gold has driven approximately 50 tons of inflows into bullion-backed exchange-traded funds so far in September, marking a third consecutive month of gains.
Officials have offered upbeat assessments ahead of talks between President Donald Trump and Chinese President Xi Jinping that are expected to cover artificial intelligence, trade, and investment.
