Gold rises 2.3% on Sept 17 as dollar and oil prices fall
Spot gold traded at US$4,351.96 an ounce early on September 18 in Singapore as lower oil prices and Treasury yields eased pressure on bullion
- Gold rose 2.3% on September 17, recovering from a recent six-week low.
- The price increase was driven by a fall in the U.S. dollar, which made gold cheaper for buyers using other currencies.
- Declining oil prices also contributed by easing inflation concerns that had been putting pressure on the gold market.
- A drop in U.S. Treasury yields further boosted gold's appeal, as lower yields make non-interest-bearing bullion more attractive.
Gold rose 2.3% during US trading on Thursday, September 17, 2026, as a softer US dollar and lower oil prices helped bullion recover from a near six-week low reached the previous day. Gold held near US$4,350 an ounce in early Singapore trading on Friday. Spot gold stood at US$4,360.36 an ounce at 1.45pm New York time, or 5.45pm GMT, on September 17. US gold futures for December delivery settled 0.3% higher at US$4,399.70 an ounce.
Lower oil prices ease inflation pressure on gold
Falling oil prices helped ease inflation concerns weighing on gold on September 17. Crude declined for a second consecutive day to a one-week low as fears of supply disruptions diminished.
David Meger, director of metals trading at High Ridge Futures, said gold had recently moved closely in the opposite direction to energy prices because of inflation pressures. “So it’s these lower energy prices that are removing some of that pressure on the gold market,” he said.
The US dollar index retreated from a seven-week high on September 17, making dollar-priced bullion less expensive for buyers holding other currencies.
The yield on the benchmark 10-year US Treasury fell on September 17. Although gold is regarded as an inflation hedge, higher interest rates and bond yields tend to reduce its appeal because bullion pays no interest.
Other precious metals also gained during September 17 trading: spot platinum rose 1.8% to US$1,783.69 an ounce, silver climbed 4.2% to US$65.60 an ounce and palladium increased 1.6% to US$1,289.45 an ounce.
Fed signals further increases after September rate rise
The US Federal Reserve raised interest rates by 0.25 percentage points on Wednesday, September 16, and signalled further increases in the coming months. Chair Kevin Warsh joined the unanimous decision, the Fed’s first rate rise since 2023.
Reuters characterised the Fed’s September 16 rate increase as an effective acknowledgement that the Trump administration had yet to bring inflation under control, with policymakers concerned that price pressures could worsen.
CME Group’s FedWatch tool showed traders assigning about a 51% probability to another US rate increase at the October meeting as of September 17, up from nearly 44% the previous day.
UBS said in a research note that rising fiscal deficits, heavier debt burdens, eventual US dollar weakness and an expected return to monetary easing by the Fed in 2027 should support gold despite volatility in the near term.
The Bank of England left interest rates unchanged on September 17. The Bank of Japan was expected to raise rates to a 31-year high on September 18 and signal readiness to increase borrowing costs further.
Gold holds near US$4,350 in Friday trading
Gold traded around US$4,350 an ounce early on Friday, September 18, as a volatile week neared its end. Bloomberg described Thursday’s gain as nearly 2%, recovering most of the losses from the preceding three days.
US Treasury yields fell across maturities after initially jumping following the Fed’s unanimous September 16 rate increase. The subsequent decline in yields relieved pressure on gold.
- Spot gold rose 0.2% to US$4,351.96 an ounce at 8.12am Singapore time on September 18.
- Spot silver gained 0.4% to US$65.51 an ounce in the Friday update, following a 3.6% rise on September 17.
- Spot platinum and palladium edged higher in early trading on September 18.
- The Bloomberg Dollar Spot Index, which measures the US currency’s performance, was little changed on September 18 after falling 0.1% the previous day.
