Story perspectives

Gold plunges 3.9% as Fed rate hike hits $4,120

By Drooid · Sep 29, 2026, 2:54 PM UTC · How we work

Summary

Fed Rate Hits Gold

The Federal Reserve’s rate hike pushed gold to $4,120.49 an ounce, a 3.9% decline.
Ten-year U.S. Treasury yields rose above 5.2%, the highest since June 2007.
Gold-backed ETFs attracted $18 billion in August, with U.S. products pulling in $7.9 billion, the strongest since September 2025.
Shanghai Futures Exchange trimmed about 11,000 gold contracts ahead of the Oct 1-7 holiday.
Gold strategist Aakash Doshi expects short-term pressure toward $4,000 but keeps a $5,000 target for Q2 2027.

Summary

Trump Rejects Iran

President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz within seven days.
Iranian officials said an agreement before the U.S. midterm elections is unlikely.
U.S. and Iranian representatives met separate mediators without achieving a diplomatic breakthrough.
Brent crude rose about 3% after the rejection, raising energy costs and inflation concerns.
Exness analyst Christopher Taher warned that ongoing Middle-East tensions could keep yields high and gold vulnerable.

History

Historical Context

The 1973 OAPEC embargo forced Arab producers to cut shipments, raising crude from $3 to $12 per barrel – a near-300% jump. The 1979 Iranian Revolution cut output about 4% and more than doubled prices, sending investors into other safe assets. These shocks illustrate how Middle-East turmoil and monetary tightening can again lift oil prices and spur safe-haven buying in 2024.

1 of 3

Fed Rate Hits Gold

The Federal Reserve’s rate hike pushed gold to $4,120.49 an ounce, a 3.9% decline.
Ten-year U.S. Treasury yields rose above 5.2%, the highest since June 2007.
Gold-backed ETFs attracted $18 billion in August, with U.S. products pulling in $7.9 billion, the strongest since September 2025.
Shanghai Futures Exchange trimmed about 11,000 gold contracts ahead of the Oct 1-7 holiday.
Gold strategist Aakash Doshi expects short-term pressure toward $4,000 but keeps a $5,000 target for Q2 2027.

1 / 3