Gold Prices Weaken as Central Banks Signal Higher Interest Rates

Gold prices have been trending lower due to investors weighing in on the prospect of major central banks keeping interest rates elevated for longer. Spot gold fell 0.2% to $4,345.99 per ounce, as of 0147 GMT, while US gold futures for December delivery were up 0.2% at $4,382.70.

A firmer dollar makes greenback-priced bullion more expensive for overseas buyers. 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.

Kyle Rodda, senior financial market analyst at Capital.com, said short-term volatility in gold depends on how oil trades and developments in the Middle East. However, he emphasized long-term structural drivers for gold remain strong.