Gold is trading virtually unchanged on Wednesday as conflict continues to flare in the Middle East and investors raise the probability that the US Federal Reserve will move ahead with an interest rate increase as early as September to counter rising inflation.
The yellow metal is down 0.05% at $4,326.81 per ounce, holding near its lowest level in two weeks after losing nearly 6% across the previous three sessions. With markets pricing in a 70% probability that the Fed will tighten monetary policy at its next meeting, investors are also keeping a further rate increase on the table through to March of next year.
“The market reaction is being reasonable,” with the decline in gold reflecting the higher probability of interest rate increases and a stronger dollar, said Frederik Fischer, senior portfolio manager for multi-asset and commodities funds at Allianz Global Investors, cited by Bloomberg. The move also “leaves some room for positive surprises,” he added.
On Tuesday, the United States launched a new wave of strikes against Iranian military targets. The Islamic Republic retaliated against several neighbouring countries, breaking a period of relative calm that had held across the Middle East for nearly a month and had allowed Washington, at least momentarily, to shift strategy toward an economic “war” footing.
The escalation in tensions, compounded by remarks from Fed Chair Kevin Warsh at Jackson Hole, has created an unfavourable backdrop for gold, which offers no yield. Warnings that monetary policy will need to be tightened further to bring inflation under control have multiplied among central bank officials, while markets read Warsh’s message as a signal that interest rate increases are set to resume.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/02/commodities-3/ouro-estabiliza-proximo-de-minimos-de-duas-semanas/
