Sterling Strength Cuts Gold Price Gains as Fed Hike Looms

The gold rate in the UK is currently at £103.36 per gram for 24-carat (999 fine) gold, as announced by the London Bullion Market Association's AM fix on September 12, 2026. This marks a six-week high for sterling, which has taken some of the edge off what would otherwise be a more pronounced gain for British gold buyers.

The Federal Reserve's decision to raise interest rates by 25 basis points on September 15-16 is not expected to have a significant impact on London gold prices. Sterling's strength against the dollar is partly absorbing the effect, which explains why gold prices are holding steadier than the underlying dollar dynamics would imply.

Physical demand from UK retail is providing a floor beneath spot prices, with jewellers in Birmingham and London reporting steady footfall ahead of the autumn festival season. Customers are locking in prices for Dussehra and Diwali in October, which may contribute to some price stability in the coming weeks.