Global Finance News
17 Aug 2026, 09:14
Gold Price Rises Above $4,450 as Weaker Dollar and Fed Outlook Support Demand
Gold prices moved higher on Monday, extending their recent recovery as a weaker U.S. dollar and fading expectations for another near-term Federal Reserve rate hike supported demand for the precious metal.
December gold futures were trading around $4,450–$4,456 per ounce in early U.S. trading, up roughly 0.3% on the session. Gold briefly climbed above $4,470 earlier in the day before giving back part of its gains.
Softer U.S. Data Weighs on the Dollar
The main support for gold continues to come from changing expectations around U.S. monetary policy. Recent weakness in U.S. employment and retail sales, alongside relatively moderate inflation data, has reduced expectations that the Federal Reserve will raise interest rates again in September.
Middle East Risks Add Safe-Haven Support
Geopolitical uncertainty is also helping keep demand for gold elevated. Tensions remain high around the Strait of Hormuz, continued uncertainty surrounding the U.S.-Iran conflict keeping investors alert to further escalation.
The combination of a softer dollar, lower rate-hike expectations and persistent geopolitical risks leaves the near-term backdrop supportive for gold. Attention now turns to the Federal Reserve’s July meeting minutes for further clues on the direction of U.S. monetary policy.
A sustained move above $4,500 would represent the next important psychological test for gold, while renewed dollar strength or a shift back toward more hawkish Fed expectations could limit further gains.
Gold prices moved higher on Monday, extending their recent recovery as a weaker U.S. dollar and fading expectations for another near-term Federal Reserve rate hike supported demand for the precious metal.
December gold futures were trading around $4,450–$4,456 per ounce in early U.S. trading, up roughly 0.3% on the session. Gold briefly climbed above $4,470 earlier in the day before giving back part of its gains.
Softer U.S. Data Weighs on the Dollar
The main support for gold continues to come from changing expectations around U.S. monetary policy. Recent weakness in U.S. employment and retail sales, alongside relatively moderate inflation data, has reduced expectations that the Federal Reserve will raise interest rates again in September.
Middle East Risks Add Safe-Haven Support
Geopolitical uncertainty is also helping keep demand for gold elevated. Tensions remain high around the Strait of Hormuz, continued uncertainty surrounding the U.S.-Iran conflict keeping investors alert to further escalation.
The combination of a softer dollar, lower rate-hike expectations and persistent geopolitical risks leaves the near-term backdrop supportive for gold. Attention now turns to the Federal Reserve’s July meeting minutes for further clues on the direction of U.S. monetary policy.
A sustained move above $4,500 would represent the next important psychological test for gold, while renewed dollar strength or a shift back toward more hawkish Fed expectations could limit further gains.
