Shafaqna English– Gold prices declined to their lowest level in over three weeks on Wednesday(2 Sep 2026), pressured by rising geopolitical tensions in the Middle East that have driven oil prices higher and reignited fears over inflation and potential interest rate hikes, while investors turned their focus to upcoming US employment data.
Spot gold fell 0.6% to $4,304.01 per ounce, marking its fourth consecutive session of losses and trading below the key 200-day moving average, as the US dollar remained firm—making bullion more expensive for holders of other currencies.
The recent escalation between the US and Iran, which included airstrikes and retaliation, pushed oil prices higher for a third straight session and lifted Treasury yields, adding to inflationary concerns.
According to Bas Kooijman, CEO of DHF Capital S.A., rising crude prices could reinforce monetary tightening expectations and limit gold’s recovery potential, despite its traditional status as an inflation hedge.
Markets are now pricing in a 67% probability of a Fed rate hike this month, with policymakers signaling readiness to act if inflation persists.
Traders await the ADP employment report later Wednesday and Friday’s nonfarm payrolls data, with analysts noting that softer figures might ease pressure on gold, while strong data or hawkish Fed commentary could extend its decline. Other precious metals also retreated, with silver, platinum, and palladium all posting losses.
Source: Reuters