Spot gold gains 0.3% on September 18 as oil prices fall
Gold reached a one-week high in global trading and was on course for a first weekly gain in four weeks, despite a stronger US dollar
- Spot gold rose 0.3% to a one-week high on September 18, putting it on course for its first weekly gain in four weeks.
- The primary driver for the increase was a fall in oil prices, which eased concerns about persistent inflation.
- The rise was also supported by investors unwinding bets that gold's price would fall, which had been made in anticipation of US interest rate hikes.
- A stronger US dollar, which climbed to a seven-week high, limited the extent of gold's gains by making it more expensive for foreign buyers.
Global gold prices reached a one-week high on Friday (September 18, 2026), as falling oil prices eased concerns about persistent inflation and put bullion on course for its first weekly gain in four weeks. A stronger US dollar, however, restrained the advance.
Spot gold traded 0.3% higher at US$4,352.39 an ounce after reaching its highest level since September 11 earlier in the session. Bullion was up about 0.2% for the week at the time of the report.
US gold futures for December delivery moved in the opposite direction, settling 0.2% lower at US$4,390.30 an ounce on September 18.
Brent falls for third day as Saudi supply concerns ease
Brent crude fell for a third consecutive day on September 18 as easing concerns over Saudi Arabian supply outweighed fears that the Middle East conflict could spread. Cheaper oil provided some relief from inflationary pressure, although the risk of an energy supply shock from the region remained a major concern.
Chris Gaffney, president of world markets at EverBank, linked gold’s recovery to investors closing positions that had been taken in anticipation of further declines.
“Falling oil prices ease inflationary pressure because oil is a key driver of headline inflation … Precious metals investors had anticipated a US interest rate rise and opened short positions to profit from a sell-off in gold. Those positions are now being unwound rapidly,” Gaffney said.
Dollar reaches highest level in more than seven weeks
The US dollar climbed to its highest level in more than seven weeks on September 18, making dollar-priced gold more expensive for buyers using other currencies.
The US Federal Reserve raised its benchmark interest rate by 0.25 percentage points to a range of 3.75–4% on Wednesday (September 16), while signalling further increases in the months ahead.
Traders assigned about a 58% probability to another US rate rise at the Federal Reserve’s October meeting, according to CME FedWatch figures cited in the September 18 market report.
Gold is widely regarded as an inflation hedge, but higher interest rates can weaken its appeal by making interest-bearing assets more attractive.
The Bank of Japan also raised interest rates to their highest level in 31 years and signalled readiness to increase borrowing costs further.
Gold demand stays weak in India but investment supports China
Physical gold demand in India remained subdued during the week as buyers held back in the hope of lower prices. Gold premiums in China were steady, supported by strong investment demand.
“Gold is now testing resistance around US$4,400–4,440 an ounce, and a break above that zone could open the way for further gains,” EverBank’s Gaffney said.
Other precious metals also advanced on September 18. Spot silver rose 1.8% to US$66.37 an ounce, platinum gained 1.7% to US$1,798.30 an ounce and palladium added 1% to US$1,303.46 an ounce, with all three on course for weekly gains.
