Gold Price Drops Amid Stronger Dollar and Higher Interest Rate Expectations
Gold prices declined on September 25, 2026, due to a stronger US dollar and expectations of higher interest rates. Spot gold fell 0.2% to $4,270.40 per ounce by 0035 GMT and was down more than 2% for the week.
The rising dollar has increased the cost of dollar-denominated gold for investors holding other currencies, making it less attractive as a safe-haven asset. The Federal Reserve's commitment to containing inflation through higher interest rates is also weighing on gold prices.
Philadelphia Fed President Anna Paulson and New York Fed President John Williams have indicated that additional rate increases may be necessary to bring inflation under control. This has created pressure on gold markets, as higher yields make non-yielding assets like gold less appealing.