{
  "id": 7716358,
  "title": "Gold rises as traders weigh oil decline before key US Fed decision",
  "url": "https://urgent.news/2026/09/16/gold-rises-as-traders-weigh-oil-decline-before-key-us-fed-decision",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T05:50:12.000Z",
  "source": {
    "name": "Straits Times Business",
    "slug": "straits-times-business",
    "url": "https://www.straitstimes.com/business/gold-rises-as-traders-weigh-oil-decline-before-key-us-fed-decision"
  },
  "original_language": "en",
  "account": "Gold prices surged following a two-day decline, as traders considered a slight reduction in oil prices alongside expectations of an imminent interest-rate increase by the US Federal Reserve on September 16. The precious metal experienced a price surge of up to 1.1 percent, reaching above $4,340 per ounce. Meanwhile, oil prices fell due to supply disruptions and the perception that gains were overvalued, alleviating some inflation concerns. However, traders are pricing in a 93 percent probability of the Fed raising rates, following a hotter-than-expected inflation report last week that reinforced such forecasts. Despite gold typically being negatively impacted by higher borrowing costs, the 10-year US Treasury yield softened after hitting the highest level in nearly two decades, a consequence of increased capital investment and soaring energy prices that fueled inflation. The two-year US Treasury yield also slightly decreased, providing some relief to silver. Market participants anticipate the central bank to raise interest rates for the first time since 2023, although if it fails to do so, or if Fed chairman Kevin Warsh remains ambiguous about additional hikes, investors might demand higher yields on long-term bonds to protect their assets from elevated inflation risks. Christopher Wong, a strategist at OCBC Bank, noted that while markets already anticipate a high likelihood of a Fed hike this week, the primary uncertainty revolves around subsequent actions. Should the Fed maintain an open door for further tightening, gold could become more susceptible to downward pressure, potentially falling towards $4,000 an ounce if the crucial support level at $4,250 is breached. Spot gold increased by 0.8 percent to $4,326.57 per ounce at 12:25 PM. Silver rose by 1.5 percent to $64.60 per ounce, while platinum and palladium also exhibited upward momentum. The Bloomberg Dollar Spot Index, a measure of the US dollar, remained relatively stable after gaining 0.6 percent over the past two sessions.",
  "summary": "Gold still down around 3 per cent in September as traders recalibrate outlook for US Fed policy.",
  "key_points": [
    "Gold prices surged 1.1% to above $4,340 per ounce",
    "US Fed expected to raise rates on September 16, 93% probability",
    "US Treasury yields softened after hitting near 2-decade high"
  ],
  "editors_take": "Gold's surge amid expectations of a US Fed rate hike signals that traders see the metal as a hedge against inflation, despite its typical negative response to higher borrowing costs.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}