Fed Rate Hike Fears Send Gold Prices Reeling

The price of gold declined in September due to rising U.S. bond yields and expectations of another interest rate hike by the Federal Reserve.

This increase in real interest rates makes holding gold more expensive, as investors forgo interest when they hold it.

The 30-year U.S. Treasury yield reached its highest level since June 2002, at 5.62 percent, adding to the pressure on gold prices.

Central banks continue to buy gold, with China's reserves rising to 2,346.43 metric tons by June 2026, but this has a slower impact than interest rate expectations.