Gold Prices Tumble Amid Fed Comments and US-Iran Conflict

Gold prices edged lower on Wednesday as investors weighed comments from US Federal Reserve officials and diplomatic efforts to end the US-Iran conflict. The metal has been sensitive to recent swings in oil, with investors assessing whether elevated energy prices will keep inflationary pressures strong enough to prompt further Fed rate increases.

Richmond Fed president Tom Barkin warned that it could take time for inflationary shocks to wane and there was a risk of entrenched elevated pressures. Boston Fed president Susan Collins said a somewhat more restrictive federal funds rate would help ensure that inflation durably returns to target, given the labour market is on a better footing.

Oil extended its decline after US President Donald Trump's latest comments on Iran, as well as reports that Saudi Arabia aims to restore crude exports via its East-West pipeline. West Texas Intermediate has now fallen more than 10 per cent since last Tuesday's close.

Gold imports into China have been stronger than ever in 2026, with purchases through August topping 1,000 tonnes, surpassing the total for the whole of 2025. Spot gold fell 0.6 per cent to US$4,334.27 an ounce at 11 am in Singapore.