Gold Prices Fall as Dollar Strengthens and Rate Expectations Weigh - Yahoo Finance

AI desk brief

Gold fell as the dollar firmed and traders weighed a more restrictive Fed outlook: spot gold dropped 0.9% to $4,318.05/oz and futures eased 0.5% to $4,354.90/oz, while the DXY rose 0.1% to 100.71, its highest since July 30. The move was framed as a mix of stronger USD demand, inflation concerns, and expectations that the Fed may need to keep policy tight after last week’s 25 bp hike to 3.75%-4.00%.

ANZ said Chinese buying continues to provide support beneath the market, with Chinese gold imports at 1,000t over the first eight months of 2026, August ETF inflows of about 44t, and PBoC purchases of roughly 20t in the month. That offsets some of the rate headwind, but near term the stronger dollar and higher-for-longer policy narrative remain the dominant pressure on bullion.