Gold price erases 2026 gains as Fed hike bets climb to 70%, silver slides
Bullion’s three-day slide has erased almost all of its 2026 gain, but the miners are coming off their best August since at least 1994.
Gold prices plummeted for the third consecutive day on Tuesday, reaching their lowest point in two weeks as global bond yields soared to their highest level since 2008. Traders now estimate a 70% chance of a Federal Reserve rate hike this month, despite the metal's recent gains of 10% in August, the best performance since January.
Comex gold for December delivery slipped by 2.4% to $4,374.10 an ounce, while spot gold declined by 1.7% to $4,362.57. Silver also took a nosedive, losing 3.2% to $64.83 an ounce. The pressure on gold is attributed to a global bond selloff, with ten-year Treasury yields hovering near 4.77% and the British equivalent climbing 16 basis points to 5.22%.
Bullion's weakness is a follow-up to comments from Fed officials, including Governor Michael Barr and Chairman Kevin Warsh, who warned that rising inflation could become entrenched. Despite the recent dip, gold is still up 0.7% for 2026, trading around 20% below its record high of $5,419.83 set in January. Gold-related equities, however, saw a significant decline, with Eldorado Gold, Agnico Eagle, and Equinox Gold all falling between 2.5% and 3.2%.
Indian Prime Minister Narendra Modi urged citizens to refrain from purchasing gold due to the country's widening trade deficit and a weakening currency.
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- Gold approaches two-week low on rising yields, Fed hike bets financialpost.com
