By Gold Holds Near $4,300 as Fed Rate-Hike Bets Rise
Gold steadied near $4,300 an ounce ahead of the U.S. consumer price index report after a nearly 2% decline, with hotter producer inflation, rising oil prices and higher Treasury yields increasing pressure on the precious metal.
By Paul Ploumis
Published September 11, 2026
Key Points
- Gold traded near $4,300 an ounce after falling almost 2% in the previous session.
- Markets placed the probability of a 25-basis-point Federal Reserve rate increase at roughly 71%, up from 61% before the producer-price data.
- Rising oil prices and Treasury yields added pressure to non-interest-bearing gold.
- Gold was on track for a weekly loss of more than 2%, which would mark a third consecutive weekly decline.
SEATTLE (Scrap Monster): Gold traded near $4,300 an ounce on Friday after falling nearly 2% in the previous session, as investors waited for the U.S. consumer price index report and reassessed the outlook for Federal Reserve interest rates.
The inflation report was expected to provide another signal on whether the Fed could raise rates at its meeting the following week.
Hotter Producer Inflation Lifts Rate-Hike Expectations
U.S. producer-price data released Thursday showed inflation accelerating in August as the Iran war pushed wholesale energy costs higher.
Following the report, markets priced in roughly a 71% probability of a 25-basis-point Federal Reserve rate increase the following week, up from 61% before the producer-price data.
The shift in rate expectations added another headwind for gold, which generally faces greater competition from interest-bearing assets when borrowing costs and bond yields rise.
Oil and Treasury Yields Add Pressure
Gold also came under pressure from surging oil prices amid the escalating U.S.-Iran conflict, which intensified concerns over inflation.
Treasury yields moved higher after purchases by the U.S. Treasury Department came in below expectations during its first expanded buyback operation.
Higher yields can weigh on gold because the metal does not pay interest.
Gold Heads Toward Third Weekly Decline
Gold was on track to lose more than 2% for the week, which would mark its third consecutive weekly decline.
Courtesy: www.tradingview.com
