Gold rises ahead of Fed rate decision; focus on Warsh comments
Gold prices rose on September 16 supported by a weaker US dollar. Traders awaited the Federal Reserve's policy decision, with markets pricing a 90% chance of a quarter-point rate hike.
Gold Market
Gold prices rose on September 16 supported by a weaker US dollar. Traders awaited the Federal Reserve's policy decision, with markets pricing a 90% chance of a quarter-point rate hike.
Spot gold dropped 0.9% to $4,308.24 as traders priced in an 89% chance of a US rate hike this week, following hot inflation data and rising oil prices.
Gold and silver declined on September 14, 2026, as oil prices jumped 4% on Middle East supply concerns and investors weighed the prospect of a US Federal Reserve rate hike.
Gold approached a breakout last week but lost momentum, settling back above $4,200. Sticky inflation, rising bond yields, and a Fed rate hike expectation counterbalanced geopolitical oil supply risks.
Gold edged lower on Monday as rising oil prices fuelled inflation worries. Traders now price in an 86% probability of a US rate hike, a headwind for the non-yielding metal.
Gold is subdued around $4,330 at the start of a key week for the Federal Reserve. Rate hike expectations and rising bond yields are weighing on the precious metal.
Gold’s weekly parabolic long trend, confirmed in mid-August, is showing signs of fatigue after three consecutive down weeks. The FOMC meeting and inflation data may decide its fate.
Gold prices rose more than 1% on Friday, recovering from recent lows. Strong US inflation data boosted expectations of a Federal Reserve rate hike next week. Indian demand stayed weak while Chinese buying held up.
TD Securities says gold has held firm despite higher Fed rate hike odds. The next big test is US inflation data, with structural demand still underpinning the metal.