Gold Prices Rebound Above $4,300 Ahead of Federal Reserve Rate Decision

Gold Prices Rebound Above $4,300 Ahead of Federal Reserve Rate Decision

Fiona Craig

Wed, September 16, 2026 at 12:47 PM GMT+3 3 min read

Gold prices rose on Wednesday after two consecutive sessions of losses, with investors awaiting the Federal Reserve's interest rate decision later in the day.

At 06:31 GMT, spot gold (XAU/USD) gained 0.8% to $4,326.44 an ounce, while gold futures increased 0.8% to $4,366.50.

Silver (XAG/USD) advanced 1.4% to $64.59 an ounce, and platinum (XPT/USD) rose 0.7% to $1,792.43. The US Dollar Index was little changed at 99.57.

The gains came as markets priced in an approximately 92% probability of a Federal Reserve interest rate increase, while elevated energy prices and government bond yields continued to influence expectations for monetary policy.

Higher Oil Prices and Treasury Yields Remain in Focus

Gold has declined more than 3% in September after trading above $4,700 an ounce in late August. Wednesday's increase brought spot prices back above $4,300, although they remained below their late-August levels.

Higher energy prices have contributed to inflation concerns, while rising bond yields have increased the opportunity cost of holding gold, which does not generate interest income.

Oil prices stabilised after two consecutive sessions of gains, but uncertainty persisted over the duration of the shutdown of Saudi Arabia's East-West pipeline.

The pipeline, which had been transporting millions of barrels of oil per day as an alternative to shipments through the Strait of Hormuz, was attacked last week.

Saudi Arabia has not specified when operations will resume or how quickly it could increase shipments through Hormuz to offset the disruption.

Saudi Aramco has also delayed some deliveries to European customers.

In the bond market, the yield on the 10-year US Treasury briefly reached 5.04%, its highest level since 2007, after rising by as much as five basis points on Tuesday.

Higher government bond yields can reduce the relative appeal of gold by increasing the returns available from interest-bearing assets.

Investors Await Fed Decision and Policy Guidance

Interest rate markets indicated an approximately 92% probability that the Federal Reserve would raise borrowing costs at its latest meeting, potentially marking its first increase since 2023.

Investors are also awaiting comments from Fed Chair Kevin Warsh for indications of the central bank's approach to future policy decisions.

If the Fed leaves rates unchanged or provides limited guidance on further increases, investors could demand higher yields on longer-dated Treasury securities to compensate for inflation risks. This remains a possible market response rather than a confirmed outcome.

Tony Sycamore, senior market analyst at IG, said gold had ended the previous session slightly lower at approximately $4,293, citing higher energy prices, rising bond yields, a firmer dollar and investor positioning ahead of the Fed announcement.

Technical Levels Remain Under Observation

Sycamore identified gold's 200-day moving average near $4,539 as a level the metal would need to regain to indicate that its decline from the $4,697 high had ended.

Until that level is recovered, he sees the possibility of a further decline towards support around $4,200.

Gold nevertheless remains above the approximately $4,000 level recorded in July.

Some investors continue to view the metal as a portfolio hedge, although its near-term direction remains subject to changes in interest rate expectations, bond yields and currency movements.

Gold price