Fed Rate Expectations Weigh on Gold Prices Amid Surge in Russian Imports

Gold prices fell on Monday as traders increasingly expect the US Federal Reserve to raise interest rates at its next policy meeting. Spot gold in London dropped by as much as 1.0% to $4385 per troy ounce before bouncing back above the 'key' $4400 level. Silver also declined, reaching a low of $65.42 per ounce.

Nicki Shiels, head of metals strategy at Swiss bullion refining and finance group MKS Pamp, observed that gold's proximity to its record highs despite bearish interest-rate expectations is telling. 'That gold is sitting within 6% of its [record New Year] highs with the Fed openly debating a hike − not a cut − tells you everything about what's actually bid here,' he said.

In other news, data from Hong Kong showed that Russian gold imports into the city have set a full-year record just seven months into 2026. According to BullionVault analysis of trade data published by the Hong Kong Census and Statistics Department (C&SD), Hong Kong imported just 3.3 tonnes of Russian-origin gold in 2021, but rose to a record 92.1 tonnes in 2025 and has already reached 112.7 tonnes between January and July this year.