Gold Prices Rise as Oil Slide Eases Fed Rate Hike Fears

Gold prices moved higher on Wednesday as a steep decline in oil prices eased inflation concerns and reduced expectations for additional interest rate increases from the U.S. Federal Reserve. Renewed signs of possible U.S.-Iran diplomacy also supported demand for the precious metal.

At 21:06 ET (01:06 GMT), spot gold rose 0.4% to $4,359.40 an ounce, while gold futures gained 0.3% to $4,396.85. Silver climbed 0.6% to $66.43 an ounce, and platinum advanced 0.3% to $1,809.03. The U.S. Dollar Index slipped marginally to 100.39.

Gold rebounded after recording its biggest decline in a week on Monday. Oil prices stabilized on Wednesday following losses of more than 9% over the previous four sessions, with concerns over Middle East supply disruptions easing amid fresh diplomatic efforts.

President Donald Trump was scheduled to address the United Nations General Assembly in New York after signaling that he was open to meeting Iranian President Masoud Pezeshkian on the sidelines. Saudi Arabia has also restarted operations on its East-West oil pipeline, restoring part of an alternative export route that bypasses the Strait of Hormuz.

Lower energy prices could reduce inflationary pressure and lessen the need for tighter monetary policy. Gold often benefits when interest rate expectations decline because the metal does not offer a yield.

Investment demand is also providing support. ANZ said about 50 tonnes of gold have entered bullion-backed ETFs so far in September, potentially marking a third consecutive month of inflows.

Chinese demand remains strong, with gold imports reaching 1,000 tonnes during the first eight months of 2026. Chinese gold ETFs added about 44 tonnes in August, while the People’s Bank of China increased purchases to roughly 20 tonnes.

Markets are now monitoring Federal Reserve officials following last week’s first rate hike in three years. Chicago Fed President Austan Goolsbee warned that persistent supply shocks could require a policy response, while St. Louis Fed President Alberto Musalem said further rate increases may be necessary to return inflation to target.