Dubai – Business News Report|| Gold prices dropped by approximately $40 during trading on Monday, September 14, 2026, continuing a streak of losses from the previous week. The decline coincided with a rise in the US Dollar Index, which measures the greenback against six major currencies. This upward movement reached 99.46 points, reflecting a 0.29 percent increase.
Market Data and Trading Volumes
By 06:15 GMT, December 2026 gold futures fell 0.91 percent to $4,368.90 per ounce. Spot gold contracts decreased by 0.44 percent to $4,330 per ounce. Silver spot prices also declined by 0.97 percent to $63.86 per ounce. Platinum rose slightly by 0.23 percent to $1,802.50, while palladium increased marginally by 0.02 percent to $1,302.29.
Inflation Data and Fed Expectations
Rising oil prices have sparked inflation concerns, strengthening expectations that the Federal Reserve will raise interest rates this week. US consumer price index data showed a 0.4 percent monthly rise in August, following a slight 0.1 percent increase in July. Traders now assign an 87 percent probability to a rate hike, up from 67 percent before last week’s data.
Geopolitical Tensions and Energy Markets
Oil prices surged more than 2 percent on Monday due to Houthi attacks on Saudi Arabia and Iranian strikes on Gulf ships. These events exacerbated supply fears following the closure of a major Saudi pipeline. Diplomatic efforts between Iran and Gulf states appeared stalled after a scheduled meeting was postponed.
Analyst Perspectives on Market Conditions
Tim Water, chief market analyst at KCM Trade, stated that gold lacks favorable conditions. He noted that rising energy costs and anticipated rate hikes before meetings with the Federal Reserve and Bank of Japan pose clear obstacles to gold returns. Water added that investors may view dips as hedges against geopolitical uncertainty.
Impact of Interest Rates on Precious Metals
Although gold is traditionally viewed as an inflation hedge, higher interest rates typically reduce the appeal of non-yielding bullion. The Bank of Japan is also expected to raise rates on Friday, driven by persistent inflation and strong economic growth. This trend reflects broader central bank policies amid high energy prices and unresolved Middle East tensions.
This story was produced in the newsroom from the disclosed sources named above.
