Spot gold gained 0.3% to $4,355.05 per ounce, helped by a softer US dollar and lower oil prices. While the US Federal Reserve's recent interest rate hike creates pressure, investors remain focused on long-term price targets for bullion.
Gold prices moved higher in early trading on September 18, 2026, as a weaker US dollar and declining crude oil prices improved the appeal of the metal. Spot gold rose 0.3% to $4,355.05 per ounce, while US gold futures saw a slight decline of 0.1% to $4,394.10 per ounce.
Factors Influencing Gold Prices
The drop in crude oil prices for the third day in a row has helped ease some inflation concerns in financial markets. Additionally, because gold is priced in US dollars, a weaker dollar makes the metal cheaper for buyers using other currencies. This often increases demand for gold, which is generally considered a store of value.
However, gold faces competition from other assets. The US Federal Reserve recently increased interest rates by 25 basis points and suggested more hikes could occur. Because gold does not pay interest or dividends, investors often prefer assets like bonds or bank deposits when interest rates rise. This makes the metal less attractive during periods of high-interest rates, acting as a pressure point for prices.
Global Central Bank Actions
The global interest rate environment remains active. The Bank of Japan raised its interest rates to their highest level in 31 years and indicated that further increases are possible. Meanwhile, the Bank of England opted to keep interest rates steady for now but signaled that more tightening could be needed if inflation stays high.
Despite the pressure from higher rates, some analysts maintain an optimistic outlook. Goldman Sachs, for instance, has kept its end-2027 gold price forecast at $5,400 per ounce, suggesting that the broader upward trend for the metal may persist even if the path to higher prices is slower.
Performance of Other Precious Metals
Other precious metals also saw gains alongside gold. Silver rose 1.1% to $65.91 per ounce, while platinum climbed 1.4% to $1,793.15 per ounce. Palladium also performed well, advancing 1% to reach $1,303.74 per ounce.
Investors will likely track central bank decisions, changes in the value of the US dollar, and energy price trends, as these factors remain the primary drivers of precious metal prices in the near term.