Gold firming early Wednesday, supported by a drooping dollar, while investors keep their eye on the Federal Reserve as speculations continue that they may raise interest rates next week to combat inflation which has risen on the war in Iran.
Key U.S. inflation data due late this week may provide further insight on the central bank’s next moves and guidance to precious metals traders. Fed policymakers are set to meet next Tuesday and Wednesday. Last week, the closely watched U.S. monthly jobs report showed hiring was unexpectedly strong in August, signaling that the labor market may be resilient enough to tolerate a rate hike.
December gold futures fell 0.8% Tuesday to settle at $4,439.00 an ounce on Comex. Trading on the exchange was limited Monday for the U.S. Labor Day holiday and any trades posted for Tuesday’s settlement. The front-month contract lost 1.2% last week. 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 up $29.20 (+0.66%) an ounce to $4468.20 and the DG spot price is $23.90.
Gold is trading in a range on either side of $4,400 as it seeks support or resistance.
Both the producer price index and consumer price index data for August are due out at the end of this week. Last week, the jobs report showed that employers added 162,000 jobs last month, and the unemployment rate held at 4.1%. The figure far exceeded the 55,000-job increase forecast by economists ahead of the report.
The Fed closely watches both inflation and the labor market when setting monetary policy. A rate hike would be considered bearish for gold, making it less attractive than other assets, so holding rates steady gave the precious metal a boost.
Almost 61% of investors tracked by the CME FedWatch Tool are betting that the Fed will raise interest rates by 25 basis points at its next policy meeting next week, while the rest are expecting rates to remain unchanged.
The central bank held interest rates steady at 3.5% to 3.75% last month, but dissenters signaled growing support for a rate hike in 2026, and the minutes indicated broader support for rate increases if inflation doesn’t go down. The Fed has kept interest rates unchanged this year after three previous rate cuts.
But the markets are still closely watching developments in the Middle East for inflationary risk. The U.S. military said it destroyed five more Iranian oil tankers on Tuesday in response to Iranian attacks on its warships. The escalating hostilities sent benchmark Brent blend oil prices toward $100 a barrel.
December silver futures increased 0.4% Tuesday to settle at $67.00 an ounce on Comex. The front-month contract fell 1.5% last week. 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 up $1.195 (+1.78%) an ounce to $68.195 and the DG spot price is $67.95.
Spot palladium declined 2.3% Tuesday to $1,360.50 an ounce. It fell 2.8% last week. 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 $13.90 an ounce to $1377.00.
Spot platinum rose 1.5% Tuesday to $1,852.20 an ounce. It retreated 1.4% last week. 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 up $68.60 to $1917.80
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