Oil-Driven Inflation Fears Push Yields Higher, Pressuring Gold
09 September 2026
Precious metals came under pressure overnight as US Treasury yields continued to rise, with the US 10-year yield climbing to 4.8%. While geopolitical tensions remain elevated, higher oil prices stemming from the ongoing US-Iran conflict are reinforcing inflation concerns, prompting markets to reassess the outlook for monetary policy and interest rates.
UBS is forecasting the Federal Reserve to deliver a further 50 basis points of rate hikes by year-end. Expectations of tighter monetary policy have supported both real yields and the US dollar, two factors that typically act as near-term headwinds for precious metals by increasing the opportunity cost of holding non-yielding assets.
Daily Performance
Gold: Currently trading at USD $4,351oz (AUD $6,030oz), -1.7%
Silver: Currently trading at USD $65.5oz (AUD $90.9oz), -1.5%
Platinum: Currently trading at USD $1,821oz (AUD $2,522oz), -1.1%
Other Commodity Markets
Oil: Brent crude continued to climb, topping USD $99/bbl as markets continue to assess Middle East supply risks and ongoing disruptions to Gulf energy flows. The overnight spike came off the back of a report that the US military was attacking targets near Iran’s key oil export facility (AFR).
Copper: Copper prices pushed to fresh record highs overnight (USD $14,617/tonne) amid tight global supply conditions following the increasing demand from data centres, solar panels and the general electrification trend.
BCOM: The Bloomberg commodities index (BCOM) rose to a record high of USD $143.82 overnight (+31% year-to-date). The index has been primarily driven by the growth in the energy sector, most notably oil and refined petroleum products.
Key Drivers
Expectations surrounding next week's US CPI release and Fed decision remain the dominant macro catalyst.
Central bank gold purchases and ETF flows remain significant structural tailwinds for the sector.
Luke Tyler
Senior Analyst, ABC Bullion
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