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Gold Climbs 1.1 Percent to $4,310 After Fed Rate Hike

By Markets Desk · 2026-09-17 · 2 min read
A rough, unrefined nugget of gold resting on a dark surface
Illustration: Tradingbird

Spot gold hit $4,310.49 on Thursday as traders absorbed the US Federal Reserve's latest decision. The metal recovered from a six-week low despite expectations of further tightening.

Spot gold rose 1.1 percent to $4,310.49 per ounce on Thursday. This move reversed a slide that had pushed prices to a six-week low on Wednesday. The rebound occurred as markets processed the US Federal Reserve's interest rate hike. Traders also weighed signals that further policy tightening is likely. US gold futures for December delivery traded at $4,348.70. These contracts were down roughly 1 percent from the previous close. The precious metal sector showed mixed signals amid shifting macroeconomic expectations. Analysts noted that technical factors drove much of the recent upside. The Fed's hawkish stance was already largely priced into the market. This limited the immediate impact of the new rate decision on gold prices.

Fed projections point to further hikes

The Federal Reserve raised interest rates on Wednesday. The new central bank chief, Kevin Warsh, joined a unanimous decision for the hike. The bank flagged additional rate increases in coming months. This move acknowledges persistent inflation pressures. Updated quarterly economic projections show 16 of 18 policymakers expect at least one more quarter-point hike by the end of 2026. Only two officials see rates remaining stable from this point. Higher interest rates reduce the appeal of non-yielding assets like gold. This dynamic boosts the attractiveness of interest-bearing instruments. The Bank of England is expected to hold rates steady on Thursday. Investors are watching for hints that rising energy costs could force a policy shift. The central bank may follow the Fed's lead if inflation pressures mount.

Oil supply fears ease prices

Oil prices fell on Thursday, extending losses from the previous session. Reports indicate Saudi Arabia is offering extra crude cargoes through Oman. This move reduced fears of supply disruptions in the Middle East. Lower oil prices could support gold prices in the medium term. Kelvin Wong, a senior market analyst at Oanda, highlighted this correlation. He expects gold to remain range-bound until oil declines materialize. The Bank of England's decision is also under scrutiny. Rising energy prices could influence its monetary stance. The interplay between oil, inflation, and central bank policy remains a key driver for precious metals. Market participants are closely tracking these cross-asset movements.

Precious metals post broad gains

Spot silver rose 1.4 percent to $63.83 per ounce. Platinum firmed 1.6 percent to $1,780.55. Palladium climbed 2 percent to $1,295.00. These gains reflect broader demand for industrial and investment metals. The rally in silver and platinum mirrors the recovery in gold. Analysts from GN auto markets/commodities: gold prices noted the technical nature of the move. The market is digesting the Fed's decision and its implications. The outlook for metals remains tied to global economic conditions. Investors are assessing the balance between inflation risks and rate hikes. The current price action suggests a cautious approach to new positions. Market volatility is expected to persist as central banks communicate their paths.

Based on reporting by The Business Times, compiled by the Tradingbird desk.

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