US Gold Prices Plummet on Dollar Strength and Rate Hike Expectations
Gold prices in the United States have declined to $138.03 per gram for 24-karat, or $4,292.90 per troy ounce, following a Federal Reserve statement that ruled out rate cuts in 2026.
The Comex settlement price on Wednesday reflected the dollar's strength, which has increased the opportunity cost of holding gold as interest rates rise and risk-free yields increase.
Gold earns no interest, making it less appealing when high-yield environments prevail. Institutional sellers took the cue from Comex open interest and positions unwound through the afternoon session.
The drop in US gold prices was uniform across major cities, with no state-level levy variation affecting retail prices. The decline continues a retreat from the early-September high that has erased roughly $2 per gram over two weeks.