Gold Opens Lower as Treasury Yields Hit 2007 Highs
Gold futures opened at $4,340.30, marking the lowest start in two weeks. Rising U.S. Treasury yields and expectations of a Federal Reserve rate hike pressured the metal on Tuesday, September 15, 2026.
Gold December futures opened at $4,340.30 per troy ounce on Tuesday. This represents a 0.3% decline from Monday's closing price. By 6:54 a.m. ET, the price had fallen further to $4,315.30. This level marks the lowest opening price in two weeks. The drop coincides with a sharp rise in U.S. bond yields.
Ten-year Treasury yields reached their highest levels since 2007. This move occurred ahead of the Federal Reserve's two-day meeting starting today. Market participants now see a 92.5% probability of a rate increase. This figure rose from 86.5% on Monday and 69.4% on Friday. The data comes from the CME Group's FedWatch tool.
Yield surge drives price correction
Higher yields increase the opportunity cost of holding gold. Investors demand higher returns on risk-free assets when rates rise. This dynamic typically weakens demand for non-yielding precious metals. The recent yield spike has directly impacted gold's price action. Traders are adjusting positions in response to the shifting rate outlook.
Geopolitical tensions support oil prices
Attacks on a key oil pipeline in Saudi Arabia escalated Middle East tensions. Crude oil prices rose back above $100 per barrel. Higher energy costs can feed into broader inflation expectations. This macroeconomic backdrop complicates the Federal Reserve's policy decision. The interplay between energy prices and bond yields remains a key market driver.
Long-term performance remains strong
Despite the short-term drop, gold remains up 19.2% over the past year. The one-year gain reached 95.6% in late January. The metal is up 0.4% over the last month. It is down 1.2% over the last week. Experts note that gold serves as a portfolio stabilizer rather than a primary return driver.
