Gold Slides to Seven-Week Low as Oil Surge Fuels Fed Rate-Hike Bets

On September 28, spot gold fell more than 3 % to $4,155.67 per ounce, its lowest level since August 5. U.S. gold futures for December delivery slipped to $4,188.10 per ounce. The decline coincided with a rebound in Brent crude after President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, pushing oil higher and reviving inflation concerns.

Gold edges higher after 4% plunge as fresh U.S. data looms large

The United States and Iran have been locked in an eight-month standoff over the strategic waterway. Trump’s rejection of Tehran’s seven-day reopening plan kept oil supplies constrained, sending Brent crude above $106 a barrel. Higher energy costs lift inflation expectations, prompting market participants to price in additional Federal Reserve tightening. The Fed had already raised its policy range by a quarter-percentage point in mid-September and signaled that further hikes were likely.

Strait of Hormuz Standoff Fuels Rate Hike Bets as Gold Plunges Nearly $100 in Asian Trading, Breaching $4,200 — BigGo Finance

• Spot gold prices reported across outlets ranged from $4,111 to $4,261 per ounce.

Gold’s Inflation Hedge Falters as Oil Lifts Fed Bets, Highlighting Low-Cost Miners’ Margin Edge - Article

• The 10-year U.S. Treasury yield rose to roughly 5.2 %, a level not seen since June 2007; the 30-year yield topped 5.3 %.

Gold Slides Below $4,200 as 5.2% Treasury Yield and Oil Spike Fuel Fed Hike Bets — BigGo Finance

• CME FedWatch Tool indicated a 70.3 % probability of a second quarter-point hike in October; other gauges placed the odds between 65 % and 66 %.

Gold slips 4% to fall below $4,200 on firmer dollar, bond rout, and Fed hike bets

• Brent crude climbed to $106–$107 a barrel following the diplomatic flare-up.

Gold slips 4% to fall below $4,200 on firmer dollar, bond rout, and Fed hike bets

• Silver fell 4.6 % to about $62 per ounce, and platinum and palladium each slipped more than 2 %.

Yellow.com

Federal Reserve officials emphasized the need to keep policy restrictive. President Trump reiterated that any deal to reopen the strait must meet U.S. conditions, describing Iran’s reliance on Hormuz revenues as a strategic vulnerability.

Gold slips 4% to fall below $4,200 on firmer dollar, bond rout, and Fed hike bets

• Reported spot gold levels vary: Reuters cited $4,155.67/oz, CNBC $4,223.95/oz, Investing.com $4,139.91/oz, and TradingView $4,156/oz.

Gold’s Inflation Hedge Falters as Oil Lifts Fed Bets, Highlighting Low-Cost Miners’ Margin Edge - Article

• Probability of an October hike is quoted as 70.3 % (CME FedWatch), 66 %, and 65 %.

Gold’s Inflation Hedge Falters as Oil Lifts Fed Bets, Highlighting Low-Cost Miners’ Margin Edge - Article

• Yield figures differ slightly, with some sources noting 5.20 % for the 10-year note and others reporting 5.22 %.

Gold slips 4% to fall below $4,200 on firmer dollar, bond rout, and Fed hike bets

These discrepancies reflect real-time market volatility and differing data timestamps; no single source provides a definitive closing price.

Gold edges higher after 4% plunge as fresh U.S. data looms large

• “The high bond yields and high oil price tandem continues to act as a thorn in gold's side. Oil prices have risen on mixed signals about oil flows, which is keeping inflation front and centre for investors,” — Tim Waterer, chief market analyst at KCM Trade

CNBC

• “ETF demand remains resilient, but rising credit stress adds another risk: if tighter financial conditions trigger a scramble for cash, gold’s deep liquidity could make it a source of funds, adding short-term selling pressure even as longer-term fiscal and financial risks remain supportive,” — Ole Hansen

Gold Sinks To 7-Week Low As Treasury Yields, Fed Hike Bets Rise — Hansen Warns Bullion’s ‘Resilience’ Faces Its ‘Toughest Test Yet’