Gold Prices Tumble as Higher Interest Rates Weigh on Inflation Fears

Gold prices eased on Wednesday as investors weighed the prospect of major central banks keeping interest rates elevated for longer in their efforts to curb persistent inflation.

The spot gold price fell 0.2% to $4,345.55 per ounce, while US gold futures for December delivery were up 0.2% at $4,383.10.

A firmer dollar makes greenback-priced bullion more expensive for overseas buyers, which weighed on sentiment in the gold market.

Analysts at BMI maintained their 2026 gold price forecast at an average of $4,400 per ounce, noting that elevated geopolitical risks and continued central bank purchases are expected to ensure a strong floor under gold around the $3,800 level.