Gold prices continue their downward trend as the latest US inflation data increases pressure on the Federal Reserve to deliver its first interest rate increase in three years. Markets are now pricing in a 90% probability of a hike at this week’s Fed meeting.
In early trading, gold is down 0.90%, changing hands at $4,310 per ounce. Silver is also lower, falling 1.52% to $63.29 per ounce.
Since recovering from a low close to $4,000 per ounce recorded in early August, gold has largely traded around $4,400 per ounce, tracking a steady recalibration of investor expectations regarding Fed monetary policy. Despite recent headwinds, many investors continue to bet that the yellow metal will rise gradually as it rediscovers its value as a portfolio hedging instrument.
Markets have already priced in the risk of a US policy rate increase, but gold will face further difficulty should that move materialise, said Yuxuan Tang, head of rates and foreign exchange strategy for Asia at JPMorgan Private Bank. “Conversely, a hold accompanied by a softer restrictive tone would push real yields lower and reignite concerns about monetary policy credibility and currency value erosion, which should be supportive for gold,” Tang said.
According to Tang, gold will remain well supported in the medium term even within a restrictive monetary policy environment. A rate increase would “add pressure on sectors of the economy already struggling with elevated energy costs,” he said, increasing recession risk — a backdrop that is traditionally favourable for gold.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/14/mercados/commodities/ouro-continua-a-cair-enquanto-mercados-atribuem-probabilidade-de-90-de-subida-dos-juros-pela-fed/
