Gold Price Today: Oil Drop Eases Rate Hike Fears as Dollar Strengthens

TLDR

• Gold fell as the dollar strengthened following the Fed’s first rate hike in three years
• Falling oil prices reduced inflation fears, limiting gold’s losses
• China bought around 20 tonnes of gold in August, the highest in three years
• ETF inflows into gold-backed funds reached about 50 tonnes in September so far
• Fed officials signaled more rate hikes may still be needed to hit inflation targets

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Gold prices moved in both directions on Tuesday as markets weighed a stronger dollar against falling oil prices and what both mean for the Federal Reserve’s next move.

Spot gold was trading around $4,360 an ounce after reversing an earlier drop. Gold futures fell around 0.6% to $4,357.22.

The U.S. Dollar Index rose to 100.46 after gaining more than 1% last week. A stronger dollar makes gold more expensive for buyers using other currencies, which puts pressure on prices.

The Fed hiked rates last week for the first time in three years, in a unanimous vote. That decision has kept investors focused on what comes next for monetary policy.

Two Fed officials added to that uncertainty on Monday. Chicago Fed President Austan Goolsbee said the central bank cannot ignore repeated supply shocks. St. Louis Fed President Alberto Musalem said more rate rises may be needed to bring inflation down, a target the Fed has missed for more than five years.

Falling Oil Prices Offer Some Relief

Oil dropped more than 9% over four trading sessions as concerns about Middle East supply disruptions eased. A renewed push for diplomacy around the U.S.-Iran conflict helped calm markets.

Crude Oil has now declined for 5 consecutive days, its longest losing streak since August 2025 📉 pic.twitter.com/hJmu68uB9e

— Barchart (@Barchart) September 22, 2026

President Trump said he is open to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assembly in New York on Tuesday.

Lower oil prices reduce one of the main drivers of inflation. That lowers the chance the Fed will need to hike rates further, which is generally good for gold.

ANZ analysts said energy prices are still well above pre-conflict levels, meaning inflation could fall slowly and unevenly. That keeps the door open to more policy tightening.

TD Securities analyst Ryan McKay said gold is “holding extremely strong” after the rate hike, with falling energy prices offering support. He added that near-term weakness is “increasingly seen as a buying opportunity.”

Central Bank and ETF Demand Stay Strong

China bought around 20 tonnes of gold in August, the most in three years. Chinese gold imports have also risen more than 80% year over year. That helped offset softer buying from India.

ETF inflows into gold-backed funds reached about 50 tonnes in September, making it the third straight month of gains. ANZ said that investment demand is starting to return.

ANZ also noted that U.S. efforts to stabilize the yen and Treasury measures to ease pressure on long-dated yields point to broader concerns about debt and fiscal stress. The bank expects those concerns to bring more investors back to gold once rate hike expectations start to fade.

Investors are also watching this week’s Trump-Xi summit, which is expected to cover trade, investment, and artificial intelligence. Treasury Secretary Scott Bessent called weekend talks with China’s trade negotiator “very successful.”

Silver rose 0.8% to $66.56 an ounce. Platinum and palladium also edged higher on Tuesday.