Gold Prices Plunge Below Record High Amid Interest Rate Worries

Gold prices have started September below their record high, but experts are divided on whether the metal can recover from its recent decline. As of September 2, 2026, spot gold was trading at $4,333.35 per ounce, down 2.75% or $122.51 from the previous close of $4,455.86.

The price of gold has been volatile in 2026, with the metal hitting a record high of $5,589.38 per ounce on January 28 but then losing significant ground to reach its current level. Despite this decline, gold is still up about 24.48% over the past 12 months compared to $3,481.27 per ounce one year ago.

One major factor influencing gold prices is interest rates. The Federal Reserve's decision on rate hikes could impact demand for gold, with higher rates making other assets more attractive and potentially reducing gold's value. A weaker US economy or a declining US dollar could also help gold prices recover.