Gold Prices Plummet to Two-Week Low as Rate-Hike Bets Reach Two-Thirds
US gold prices hit a two-week low on September 8, 2026, as Federal Reserve rate-hike bets reached a two-thirds probability. Comex spot gold settled at $4,377.84 per troy ounce, down $71.23 from Friday's close. The decline extended a selloff that began last Friday when Chair Kevin Warsh signaled the central bank's tightening cycle was not finished.
The US dollar index climbed to 99.59 on Monday, amplifying pressure on gold. Gold is priced in greenbacks and typically moves inversely with the currency. Analysts cautioned against reading too much into one speech before the next round of hard economic data arrives later this week.
Gold's retreat from its August peak brings it down roughly 1.6% by historical measures, but enough to break a support level traders had watched since mid-July. The metal still trades up roughly 22% year to date, sustained by central-bank buying and haven demand tied to geopolitical risks in the Middle East and Eastern Europe.
Goldman Sachs maintained a 12-month gold price target of $4,600 per ounce, citing sustained central-bank accumulation and structural haven demand as limiting any sustained downside. JPMorgan's metals analysts flagged $4,350 as the critical support level, warning that a sustained close below it would open the path toward $4,250.
Physical demand from India and China has provided ballast. India's jewellery-buying season is building ahead of Diwali, and retail demand in China has stayed firm amid ongoing anxiety over domestic property markets.