Gold falls early Monday as investors took profits after last week’s rally, oil prices fell and the yellow metal came under pressure because of speculation of additional U.S. interest rate hikes.
The Federal Reserve last week raised interest rates for the first time in three years, increasing the benchmark rate to 3.75% to 4.00%. The central bank indicated that another hike might be coming this year. Higher interest rates are typically seen as bearish for gold, making the yellow metal a less attractive alternate investment.
December gold futures rose 0.4% last week to settle at $4,424.90 an ounce on Comex, after the front-month contract gained 0.6% Friday. Bullion rose 9.1% last month after gaining 1.7% in July, its first monthly increase since February, and sliding 12% in June. It decreased 7% in the first half of 2026 after rallying 64% last year. The December contract is currently down $47.30 (-1.07%) an ounce to $4377.60 and the DG spot price is $4368.20.
More than half of the investors tracked by the CME FedWatch Tool are now betting that the Fed will raise interest rates by another 25 basis points in October. Before last week’s rate hike, the Fed had kept interest rates unchanged this year after three previous rate cuts. The next Fed policy meeting is Oct. 28, six days before the U.S. midterm elections. U.S. President Donald Trump has repeatedly pushed the Fed to cut rates instead.
The Fed closely watches both inflation and the labor market when setting monetary policy.
Concerns about inflation have mounted as oil prices have climbed since the start of the U.S. war against Iran at the end of February. But oil prices fell for a fourth day as shipments through the Strait of Hormuz, which has been mostly blocked because of the war reached their highest level in six months over the past two weeks, Bloomberg reported. A U.S. regional commander told the news agency that U.S. naval protection and mine-clearance efforts are paying off.
Separately, both U.S. and Chinese officials indicated that recent talks between Washington and Beijing were positive heading into a closely watched summit this week between Trump and Chinese President Xi Jinping. The possibility of better relations between the two powers reduced market fears of uncertainty and buoyed equities.
December silver futures increased 3% last week to settle at $67.15 an ounce on Comex, after the front-month contract advanced 1.6% Friday. The most-active contract touched a record above $115 in January. Silver climbed 16% last month after sliding 3.6% in July and declining 21% in June. It lost 15% in the first half of 2026 after rising 141% last year. The December contract is currently down $0.334 (-0.50%) an ounce to $66.815 and the DG spot price is $66.48.
Spot palladium slipped 0.1% last week to $1,315.50 an ounce, but gained 1.7% Friday. Palladium rallied 5.7% last month after adding 5.8% in July and dropping 11% in June. It retreated 25% in the first half of 2026 after rising 74% last year. Currently, the DG spot price is up $0.50 an ounce to $1313.00.
Spot platinum rose 0.5% last week to $1,809.30 an ounce after rallying 1% Friday. Platinum rose 7.5% last month after gaining 6.6% in July and tumbling 19% in June. Platinum slid 23% in the first half of 2026 after increasing 122% in 2025. The DG spot price is currently down $2.60 an ounce to $1804.80.
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