Gold Market
Gold prices dropped to a two-week low on Wednesday, pressured by rising Treasury yields and a strengthening dollar. Market attention now turns to upcoming US jobs data for signals on interest rates.
Gold (XAU/USD) dropped more than 2.3% on Tuesday as escalating US-Iran strikes pushed oil above $90 and the 10-year Treasury yield to 4.792%, swamping mixed US data.
Gold is consolidating near $4400 on Monday, a day after suffering its largest single-day loss in more than two months following hawkish remarks from Fed Chair Warsh.
Gold dropped 0.5% on Monday as rising oil prices from Middle East tensions stoked inflation fears and bets on a September Federal Reserve rate hike, though Treasury buybacks offered some support.
Gold declined about 0.4% on Monday after Fed Chair Kevin Warsh signalled further tightening. A rise in oil prices and US Treasury yields added pressure, though the metal remains up over 9% for August.
Spot gold fell 0.7% to $44,423.84 per ounce, hitting its lowest in nearly two weeks after Federal Reserve Chair Kevin Warsh indicated that interest rate hikes may be needed to curb inflation.
Gold snapped a five-week winning streak, falling 3.4% as Fed comments on inflation and possible tightening spooked markets. Despite the drop, gold remains up 30% year-over-year.
September is set to bring fresh volatility for gold, with US jobs reports and geopolitical tensions taking centre stage after a notable price decline.
Gold has rallied over 13% in August 2026, one of its best months since the gold standard ended. Despite the blistering pace, the metal remains far from overbought, with seasonal and technical factors still in play.