Gold rebounds as dollar weakens
Gold prices rose significantly on Friday, September 18, 2026, supported by a weakening dollar and declining oil prices, as investors closely monitor developments in the Middle East and the repercussions of global monetary tightening policies. December futures contracts for gold increased by 0.73%, reaching $4,432 per ounce, while the spot price of gold rose by 1.1% to $4,389.54 per ounce. This follows a more than 2% gain in gold on Thursday, driven by a falling dollar and lower oil prices, although Federal Reserve decisions to raise interest rates to between 3.75% and 4.00% have impacted gold's appeal, since higher interest rates reduce its attractiveness as a non-yielding asset. The dollar's decline supported the price by lowering the cost of gold for investors using other currencies. Institutions like Goldman Sachs expect gold to remain around $5,400 per ounce by the end of 2027 despite ongoing monetary tightening, as interest rates generally put downward pressure on gold demand due to its lack of periodic income. The market is also watching the impact of geopolitical tensions in the Middle East on energy prices and inflation, amid policy and currency exchange rate considerations, with volatile movements reflecting the interplay between a weakening dollar and expectations of future rate hikes.
Notice: This Is an AI-Generated Summary
Comments (0)