Gold Finds Support Despite Rising Rate Hike Expectations
01 September 2026
Precious metals were largely unchanged overnight as investors balanced escalating geopolitical tensions in the Middle East against rising expectations of Federal Reserve tightening. Gold remained relatively resilient, finding support around the USD $4,400 per troy ounce (oz) level, despite a stronger US dollar and higher short-term Treasury yields, while silver modestly outperformed.
Daily Performance:
Gold: +0.3%, currently trading at USD $4,445oz or AUD $6,205oz
Silver: +1.6%, currently trading at USD $66.5oz or AUD $92.8oz
Platinum: Unchanged, currently trading at USD $1,792oz or AUD $2,500oz
Other Commodity News:
Oil surged higher, with Brent crude trading near USD $91/bbl and WTI oil futures above USD $86/bbl, following renewed US military action against Iranian targets near the Strait of Hormuz.
Higher oil prices are reinforcing inflation concerns and contributing to expectations that the Fed may need to maintain a hawkish stance in the near term.
Key Market Drivers:
Markets continue to reprice the likelihood of further Fed tightening following Chair Kevin Warsh's hawkish Jackson Hole remarks. September rate hike odds remain elevated around 65%, supporting both Treasury yields and the US dollar, a near term headwind for precious metals.
Renewed US-Iran tensions are providing a counterbalancing safe-haven bid for gold, limiting downside despite the contribution to inflation, rate expectations and rise in yields.
Luke Tyler
Senior Analyst, ABC Bullion
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