Gold remained under pressure in late September as a stronger U.S. dollar, elevated Treasury yields and expectations of additional Federal Reserve tightening reduced investor appetite for the non-yielding precious metal. Importantly, the poster’s claim that the Fed “kept rates unchanged at 5.25%–5.50%” is outdated: the Federal Reserve actually raised its federal funds target range by 0.25 percentage point to 3.75%–4.00% on September 16, 2026, saying inflation remained elevated and that tighter policy would support a return toward its 2% inflation objective. Gold subsequently came under renewed selling pressure as markets increasingly considered the possibility of further rate increases. On September 21, spot gold fell about 0.6% to $4,349.94 an ounce, while U.S. gold futures dropped 0.9%, with dollar strength and expectations for tighter monetary policy weighing on demand. By September 25, bullion was heading toward a roughly 2.1% weekly decline, despite a modest rebound during Friday trading, as persistent inflation concerns, hawkish signals from Fed policymakers and higher Treasury yields continued to challenge the metal. Higher interest rates and bond yields tend to create a difficult environment for gold because bullion does not generate interest income, while a stronger dollar can make dollar-denominated gold more expensive for buyers using other currencies. At the same time, geopolitical uncertainty and inflation concerns can still generate safe-haven demand, creating competing forces that may keep gold prices volatile. Investors are therefore closely watching upcoming U.S. inflation, employment and economic-growth data, along with Federal Reserve commentary, for indications of whether monetary policy will become even more restrictive in the months ahead.
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