Gold Sinks to Two-Week Low Amid Hike Fears and US-Iran Tensions
Gold prices fell to their lowest level in nearly two weeks on Monday, August 31, 2026, as Federal Reserve Chair Kevin Warsh hinted at further interest rate hikes to curb inflation. According to Mettis Global, spot gold declined by 0.46% to $4,434.25 an ounce as of 10:41 am PST.
The market's expectation for a Fed rate hike in September jumped to 57%, up from 36% previously, following Warsh's remarks. Gold typically serves as an inflation hedge, but it becomes less attractive when interest rates rise, as it offers no yield on its own.
The US labor market data releases this week, including job openings figures and the nonfarm payrolls report, will be closely watched for their impact on monetary policy decisions. Meanwhile, a recent American strike on Iranian missile launchers sent oil prices higher.