Gold Defies Rate Hikes with Steady Price Above $4,300

Gold prices held steady above $4,300 despite rate hikes from the Federal Reserve and the Bank of Japan. Spot gold rose 0.2% to $4,346.65 per ounce on September 18. This stability suggests that tighter policy may not reverse gold's rally.

Goldman Sachs maintained its end-2027 forecast of $5,400 per ounce, indicating that continued central bank reserve diversification will offset weaker near-term demand caused by higher rates. However, Ahmad Assiri, Research Strategist at Pepperstone, said high rates cap gold's near-term upside.

The dollar and real yields following the Fed's next statement will test gold's rate risk. BSI's fourth-quarter audit program will also assess dealers across eight areas and award qualifying businesses a trust mark to help reduce counterparty risk.