Gold prices continued to hover around 4330 on Wednesday (Sep 23). The metal briefly dipped below $4300 in the previous session, as oil prices and US Treasury yields rebounded, reinforcing market expectations that US interest rates may need to stay restrictive for longer.
Spot gold fell roughly 0.4% to $4339. It briefly broke the $4300 threshold yesterday and moved close to a major technical support zone. A rebound emerged intraday, yet gains faded afterward. Investors are digesting increASIngly hawkish remarks from Fed officials alongside renewed gains in crude oil prices.
Fed Officials Keep Further Rate Hikes on the Table
Monetary policy remains the biggest headwind for gold at present.
St. Louis Fed President Alberto Musalem stated that further rate hikes may still be needed given peRSIstently high inflation and resilient demand. He argued that acting earlier with gradual tightening can reduce the risk that policymakers will have to adopt more drastic measures later.
Chicago Fed President Austan Goolsbee has also adopted a harder stance.
The Financial Times reported that Goolsbee believes more aggressive, front-loaded policy responses are necessary if sustained inflation is driven mainly by strong demand and AI-related investment rather than temporary supply shocks.
The US Dollar Index held near 100.46, close to its recent seven-week high, adding extra pressure to dollar-denominated gold. This set of factors has weakened the prior market view that the Fed’s 25-bASIs-point rate hike in September would only be a one-off adjustment.
Oil Rebound Erases Part of Gold’s Monday Support
Gold lost a short-term supporting factor as crude oil prices climbed again. Brent crude rose around 1.7% after four consecutive down days, approaching $102 per barrel; WTI crude rebounded in tandem. Traders are watching for potential US-Iran talks during the UN General Assembly and renewed risks of supply disruptions across the Middle East.
As a result, the 10-year US Treasury yield rose about 2 bASIs points to 4.98% during European trading, recouping part of Monday’s bond rally losses.
Ryan McKay, analyst at TD Securities, told The Business Times that gold has shown impressive resilience after the Fed’s hawkish rate hike, mainly supported by falling energy prices and the broader precious metals backdrop.
Yet Tuesday’s oil rebound suggests this support can vanish quickly.
Longer term, gold demand stays relatively solid. So far in September, gold ETFs have attracted roughly 50 tonnes of inflows, and holdings are on track to rise for the third straight month.
Gold Tests Critical Technical Bottom
The latest pullback has pushed gold right toward the 100-day moving average near $4318, making the $4300–$4320 zone the most important short-term support band.
Momentum is weak at the moment, but it cannot be interpreted as a clear bearish reversal. The daily RSI sits near the neutral 50 level, and MACD remains close to the zero line, indicating neither bulls nor bears have gained a decisive upper hand for now.
A sustained break below $4318 could trigger a test of the recent low at $4255, followed by support around $4235 established after the Fed meeting.
On the upside, gold first needs to reclaim the $4340–$4350 area. Major resistance remains in the $4395–$4410 zone, where gold has repeatedly failed to break above $4400.
A decisive breakout of this resistance range may reopen upside toward $4500 and roughly $4540.