UK Gold Prices Plummet as Fed Rate Hike Odds Hit 70%

Gold prices in the UK took a hit on September 25, 2026, as Federal Reserve rate hike expectations surged past 70%. The S&P Global's flash composite PMI for September came in at 54.4, exceeding the consensus of 52.0 and sending a clear message to gold dealers: the Fed is not finished yet.

The stronger-than-expected US economic data led to a jump in money-market odds of an October Federal Reserve rate hike, which weighed heavily on dollar-denominated gold prices. The dollar index climbed above 104, its best reading since late August, as bond yields rose in sympathy with the repriced Fed outlook.

Despite the decline, gold remains well above its five-year rolling average in GBP terms, according to World Gold Council price data. Central banks in emerging economies have been accumulating gold at a pace analysts describe as the second-highest annual rate on record, providing a floor under sharp price drops.