Gold Rises More Than 1%, Fed Outlook in Focus

09/10/2026 09:04 AST

Gold rose more than 1% on Friday, helped by a softer US dollar and lower oil prices, while market players weighed lingering inflation concerns and the outlook for Federal Reserve interest rates.

Spot gold rose 1.4% to $4,190.57 per ounce by 0630 GMT after hitting a two-month low on Wednesday. Prices headed for a weekly gain.

US gold futures for December delivery gained 1.4% to $4,215.30, Reuters reported.

The dollar rally took ?a breather, making ?greenback-priced bullion more affordable for holders of other currencies.

Oil prices fell as Middle East supply concerns eased somewhat after President Donald Trump said the US will not launch an attack on Iran before November's US midterm congressional elections amid productive talks to end their war.

"Possible tightening later ?on could keep gold at risk... Looking ahead, traders will watch upcoming economic data that could provide further monetary policy clues and influence sentiment ahead of the Federal Reserve's October meeting," said Tony Sage, CEO of Critical Metals.

"Softer numbers or guidance could push yields to the downside and support gold."

Last month, the US central bank voted unanimously to raise the policy rate by a quarter of a percentage point.

St. Louis Fed President Alberto Musalem said the US ?central bank will ?need to hike rates again to bring inflation back to its 2% target, although he declined to say what policymakers should do at their meeting later this month.

Traders are pricing in a 17% chance of a rate hike in October and an 83% probability of an increase in December, according to CME's FedWatch tool.

Gold is traditionally seen as a hedge against inflation, but higher interest rates diminish the appeal of the non-yielding asset.

Among other metals, spot silver rose 1.5% to $60.22, platinum gained 2.7% to $1,677.80 and palladium climbed 3.3% to $1,159.70.

Asharq Al Awsat