Gold Steadies Below $4,300 as Markets Await Fed Rate Decision

Gold Steadies Below $4,300 as Markets Await Fed Rate Decision

Gold Steadies Below $4,300 as Markets Await Fed Rate Decision

Updated Wed, September 16, 2026 at 12:23 PM GMT+3 2 min read

• GC=F -0.10%
• CL=F -1.19%

(Bloomberg) -- Gold was steady as high oil prices continued to fuel inflation concerns and keep interest-rate hike bets a near-certainty ahead of the Federal Reserve's policy decision later Wednesday.

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Bullion was trading around $4,290 an ounce, holding a two-day decline. Elevated energy prices pushed bond yields higher, and traders are now pricing in a 92% chance of the Fed hiking rates. Raised borrowing costs are typically negative for gold, which doesn't pay interest.

The 10-year US Treasury yield rose to the highest level in almost two decades, the latest milestone in a bruising global bond selloff driven by booming capital investment and soaring energy prices that are exacerbating inflation. The yield, which serves as a benchmark for borrowing costs across the globe, rose as much as five basis points to 5.04% on Tuesday, the highest since 2007.

This adds to investor expectations that the central bank will raise short-term borrowing costs for the first time since 2023. If it doesn't, or if Fed Chairman Kevin Warsh is noncommittal about additional increases, traders may demand even higher yields on long-term bonds to safeguard their investments against the risk of inflation remaining elevated.

Oil steadied after a two-day gain, as the duration of Saudi Arabia's East-West pipeline shutdown after attacks last week remains unclear. The route had allowed millions of barrels a day to avoid passing through the Strait of Hormuz, and Saudi Aramco is now delaying deliveries to some European customers.

Gold is down more than 3% in September, after trading above $4,700 an ounce in late August, as traders repeatedly recalibrate the outlook for Fed policy. Still, many investors are betting that bullion will regain momentum once it rediscovers its traditional value as a portfolio hedge.

Spot gold was 0.2% lower at $4,282.34 an ounce at 7:55 a.m. in Singapore. Silver was little changed at $63.67 an ounce. Platinum dipped 0.2% and palladium was up 0.1%. The Bloomberg Dollar Spot Index, a gauge of the US currency, was steady after gaining 0.2% the previous session.

--With assistance from Wendy Wells.

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