Commodities
Gold Stabilizes Near $4,376 Amid Fading Rate Hike Expectations
Gold prices have stabilized near $4,376 per ounce on August 16, 2026, following a recent rally.
The main driver behind this strength is the dwindling expectation of a Federal Reserve interest rate hike in September, which has been fueled by weaker-than-anticipated U.S. economic data released earlier in August.
The July nonfarm payrolls report showed a surprise decline of 23,000 jobs, contrasting with the consensus forecast of an 83,000 increase.
This unexpected contraction raised concerns about the underlying health of the U.S. labor market and contributed to a decline in the probability of a September rate hike from around 50% to 31%, according to the CME FedWatch tool.