Gold Falls as Oil Prices Stoke Inflation Fears, Rate Hike Odds Soar

Gold prices have declined for the third consecutive week as concerns over inflation intensify due to rising oil prices. In Singapore on September 14, 2026, gold slipped by 0.5 percent to $4,327.80 per ounce. US gold futures for December delivery dropped by approximately one percent to $4,368.60.

Data released last Friday showed a sharp increase in US consumer prices and core inflation, with the latter rising at its largest rate in four months. This has fueled expectations of a US interest rate hike at the Federal Reserve's monetary policy meeting this week.

The CME's FedWatch tool now indicates an 86 percent probability of a rate hike, up from about 67 percent before last week's inflation data. Goldman Sachs still sees upside risks to its forecast of gold reaching $4,900 per ounce by the end of 2026, although it expects elevated price volatility.