Gold edges lower as hot US inflation bolsters Fed rate hike bets
Underlying inflation rises in August, with core consumer price index up 0.3% on the month
Published Mon, Sep 14, 2026 · 09:35 AM
[SINGAPORE] Gold edged lower, after hotter-than-expected US inflation data raised prospects that the US Federal Reserve will hike interest rates later this week.
Bullion was trading near US$4,340 an ounce, after falling for a third week.
Underlying inflation rose in August as the core consumer price index, which excludes food and energy costs, increased 0.3 per cent from a month earlier, data released on Friday (Sep 11) showed.
Gold ended that session higher but was still down 1.8 per cent for the week.
The latest inflation print piles pressure on the Fed to make its first rate hike in three years when it meets this week.
Traders are pricing in a roughly 88 per cent chance of an increase in September. Higher borrowing costs are typically negative for gold, which does not pay interest.
However, by tightening monetary policy, the Fed could risk attract the ire of US President Donald Trump, who reiterated calls for lower rates on Sunday after voicing growing frustration with the central bank’s stance in recent weeks.
With conflict in the Middle East continuing to escalate, oil prices surged again, adding inflationary pressure.
Brent rose towards US$107 a barrel, after rallying almost 9 per cent last week.
A meeting planned for Monday between Iran and several Gulf nations to create a temporary shipping lane through the Strait of Hormuz was postponed, leaving efforts to increase shipments through the critical waterway in limbo.
Gold has traded in a relatively narrow range either side of US$4,400 since bouncing from a floor near US$4,000 an ounce in July, as traders repeatedly recalibrate the outlook for Fed policy.
Despite the near-term headwinds, many investors are still betting that bullion will grind higher as it rediscovers its traditional value as a portfolio hedge.
Spot gold was down 0.2 per cent at US$4,339.96 an ounce at 8.30 am in Singapore. Silver fell 0.8 per cent to US$64 an ounce.
Platinum and palladium also declined. The Bloomberg Dollar Spot Index, a gauge of the US currency, was marginally higher. BLOOMBERG
