Gold Slides as Strong US Data Boosts Fed Rate Hike Bets
Gold | 2026-09-08 05:48:16 | By Paul Ploumis
The LBMA Gold Price PM dropped 3.2% to $4,415 per ounce, cutting its year-to-date advance to about 1%.
SEATTLE (Scrap Monster): Gold prices faced renewed pressure last week as stronger-than-expected US economic figures increased expectations for tighter monetary policy. Investor sentiment was also driven by rising Treasury yields, geopolitical tensions, and shifting currency movements.
US employment and business activity remained firm, strengthening speculation that the U.S. Federal Reserve could raise interest rates by 25 basis points at its September meeting. Friday’s stronger jobs report reinforced that view. Investors now await US August inflation data, which could provide another important signal for the Fed.
The LBMA Gold Price PM dropped 3.2% to $4,415 per ounce, cutting its year-to-date advance to about 1%. Earlier in the week, hawkish comments from Kevin Warsh at Jackson Hole had led to a dip in gold prices. However, a weaker US dollar and increased global gold ETF demand helped limit the decline.
Gold remains below its 200-day moving average near $4,534 an ounce. A move above this level could improve the short-term outlook, with resistance around $4,696 and then $4,769-$4,774. On the downside, the rising 55-day average near $4,225 is considered important support.
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