Gold Prices Drop on Middle East Tensions and Rate Hike Expectations
On Monday, September 14, 2026, the price of gold fell following attacks in Saudi Arabia targeting an oil pipeline, homes, a mosque, and a vessel near the Strait of Hormuz. Gold futures opened at $4,375 per troy ounce but dropped to $4,332.50 by early morning ET, down 0.8% from Friday's close. The decline continued after rising U.S. inflation data showed an increase in consumer prices and expectations that the Federal Reserve will raise interest rates this week. The broader context includes a one-week drop of -1.2%, while gold has gained +1.2% over the past month and 19.7% year-to-date as of September 14, 2026. The market is also reacting to geopolitical tensions in the Middle East that are pushing oil prices higher (BZ=F), which typically benefits risk-on assets but hurts gold's appeal when rates rise. Investors remain cautious about a potential Fed rate hike and its impact on gold demand.
Topics: commodity prices geopolitical tensions gold interest rates