Gold prices steady after sharp 3% fall as Fed rate-hike expectations rise

Mon Aug 31 2026

Gold prices were largely steady on Monday after falling more than 3% in the previous session following hawkish comments from U.S. Federal Reserve Chair Kevin Warsh.

Spot gold was around $4,455.29 per ounce, while December U.S. gold futures were down 0.6% at $4,504.90.

Warsh indicated that the Federal Reserve may need to raise interest rates if inflation does not show sufficient progress toward the 2% target. His comments increased market expectations of a September rate hike. ([Reuters][1])

Markets are now pricing roughly a 57–60% probability of a September rate increase, compared with about 36% before Warsh's comments. Higher interest rates can pressure gold because the metal does not provide interest income. ([Reuters][1])

Investors are now focusing on this week's U.S. employment data, including job openings, ADP employment, weekly jobless claims and nonfarm payrolls. The data could significantly influence expectations for the Fed's September policy decision.

Other precious metals were relatively stable: silver $66.34/oz, platinum $1,822.46/oz and palladium $1,424.89/oz.

Market focus: Fed rate expectations → U.S. jobs data → dollar and Treasury yields → gold direction.

Source: http://in.reuters.com