Gold Holds Ground at $4,450 Amid Fed Rate Hike Fears and Middle East Tensions
Gold prices have stabilized around $4,450 per ounce as investors weigh strong US jobs data against ongoing geopolitical tensions. The metal has been trading in a narrow range between $4,405 and $4,456 per ounce since September 7, 2026.
The recent surge in the US labor market has given the Federal Reserve more room to increase interest rates at its upcoming meeting on September 15-16, with markets pricing in about a 60% chance of a rate hike. However, this could put pressure on gold as it does not pay interest, making it less attractive compared to assets like US Treasury bonds that gain value when yields rise.
On the other hand, global instability, particularly tensions in the Middle East, have kept oil prices elevated, with Brent crude trading near $97 per barrel. This has led investors to seek safety in gold, preventing a sharper drop in prices and keeping the metal in a consolidatory phase.