Gold Faces Monthly Decline as Inflation Data Looms and Rate Hikes Loom

Gold slips toward monthly loss as investors watch US inflation data for Fed clues. Rate hike bets and dollar strength weigh on bullion.

Editorial Desk

September 30, 2026 One Min Read

POLICY WIRE — New York, United States — Gold prices declined on Wednesday, setting up for a monthly loss as expectations of higher interest rates continued to pressure the market. Investors are closely monitoring upcoming US inflation data for signals about the Federal Reserve’s next move.

Spot gold was down 0.2% at $4,170.63 per ounce as of 0150 GMT, marking a drop of over 6% this month. Meanwhile, US gold futures rose slightly to $4,201.90. A stronger dollar is also making gold more expensive for holders of other currencies, further weighing on the metal’s performance.

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The US personal consumption expenditures (PCE) price index is expected to be released at 1230 GMT. Tony Sage, CEO of Critical Metals, noted that the data could influence monetary policy expectations and Treasury yields. A softer reading might support gold, while a hotter number could push yields and the dollar higher, testing the $4,100 level. CME’s FedWatch Tool shows a 47% chance of a rate increase in October and a 91% chance in December, with the Fed having raised rates by 25 basis points this month.

Reporting by Policy-Wire (PW)

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