{
  "id": 8241337,
  "title": "Gold eyes weekly gain, but hawkish Fed outlook limits upside",
  "url": "https://urgent.news/2026/09/18/gold-eyes-weekly-gain-but-hawkish-fed-outlook-limits-upside",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T11:32:13.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/gold-eyes-weekly-gain-but-hawkish-fed-outlook-limits-upside-202609181132"
  },
  "original_language": "en",
  "account": "Gold (XAU/USD) edged closer to a $4,400 level on Friday, but hawkish expectations from the Federal Reserve (Fed) kept the US Dollar (USD) strong. However, a decline in oil prices helped the metal recover from its multi-month low of $4,235, which was hit on Wednesday. As of writing, XAU/USD was trading around $4,380, up 0.90% for the day. The Federal Reserve's 25 basis point (bps) interest rate hike to the 3.75%-4.00% range on Wednesday, the first since 2023, pushed the US Dollar and Treasury yields higher, causing Gold prices to drop sharply. The US Dollar Index (DXY) traded near seven-week highs around 100.36. Nonetheless, falling oil prices helped offset the post-Fed negative pressure. The Fed's signal that additional rate hikes may be on the horizon as they remain committed to bringing inflation back to its 2% target has also contributed to the metal's rebound. Higher borrowing costs raise the opportunity cost of holding non-yielding assets like Gold. Currently, there is a 55% chance of another rate increase at the October meeting, according to the CME FedWatch Tool. Meanwhile, energy-related inflation risks remain present, with West Texas Intermediate Oil down only around 0.63% near $96.00 despite Saudi Arabia rerouting some exports and repairing its damaged pipeline. US Treasury yields, however, remain elevated at around 4.96%, not far from their 2007 high of 5.04%. For Gold to sustain its recovery, a deeper fall in oil prices, lower Treasury yields, or a shift in Fed rate expectations may be required. Despite the challenging backdrop, central bank buying, strong investment demand, and steady inflows into Gold-backed exchange-traded funds should support the metal in the long term.",
  "summary": "Gold (XAU/USD) struggles to move above the $4,400 level on Friday as the Federal Reserve’s (Fed) hawkish policy outlook keeps the US Dollar (USD) firmly bid.",
  "key_points": [],
  "editors_take": null,
  "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."
}