Gold falls on growing Fed rate hike bets ahead of policy meeting
Traders priced in a 93% chance of a quarter-point hike as higher oil prices and inflation data lifted Treasury yields and the dollar.
- On Wednesday, September 16, 2026, the Federal Reserve raised interest rates by a quarter of a percentage point to the 3.75%-4.00% range, marking its first increase in three years.
- August data showed core consumer prices rose 0.3%, piling pressure on policymakers as oil price rallies stoked inflation despite President Donald Trump's efforts to lower costs.
- Climbing bond yields reduced the appeal of non-yielding gold, which retreated as investors recalibrated for a hawkish policy stance; bullion remains a potential long-term hedge despite near-term headwinds.
- Fed Chair Kevin Warsh led the unanimous decision, which acknowledges that the administration's policies have faced challenges from capital spending and global tariffs in controlling inflation.
- Analysts warn that further rate increases may occur if energy disruptions in the Middle East persist, potentially pressuring borrowing costs and corporate margins in coming months.
128 Articles
128 Articles
The future gold contracts closed this Wednesday (16) on high firm, while the market awaits the monetary policy decision of the Federal Reserve (Fed) on the interest rates, whose expectation is high. Relief in oil prices and in the revenues of the securities of the American Treasury (Treasuries) supported the active in the session. At Comex, the metal division of the New York Mercantile Exchange (Nymex), the future gold contracts with delivery fo…
The Fed's First Hike in Three Years: Why the Dollar and Gold Are Rising Together
TODAY’S NUMBERS: 5.00% (US 10-year Treasury yield, first close above that level since 2023) · 99.5 (Dollar Index, its highest in weeks) · $4,300 (Gold, per ounce) Two assets that almost never rally together are rallying together: investors are betting on Fed resolve today while reserve managers hedge against it over the long run
Oil prices have declined today after an unexpected rise in American raw stocks, the dollar has climbed as the stakes have increased to raise US interest rates, and gold prices have stabilized amid investors' expectation of the Federal Reserve's monetary policy decision. Burnt's forward contracts have dropped 93 cents, or 0.86 percent, to $107.82 per barrel, and futures for West ore... have been published via Cedarnews News.
The renewed conflict in the Middle East and expectations about the path of US interest rates are primarily affecting the stock market sentiment. We saw a drop in the leading indices yesterday, followed by a further decline today, while the price of Brent oil is already above $106 per barrel, and the yield on 10-year US government bonds has risen to a peak not seen since 2007, as expectations about a Fed interest rate hike have strengthened. We w…
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