Gold Steadies Near 7-Week Low as Markets Bet on More Fed Hikes

Tuesday, 29 September 2026. Gold is trying to bounce after its worst day in weeks, markets are now all but certain the Fed will raise rates again by December, and the ECB's Christine Lagarde has warned that energy is pushing euro area inflation higher. Here is what is going on.

Gold steadies after a near-4% slide

Gold fell nearly 4% on Monday to its lowest level since 5 August, hit by a stronger dollar, high Treasury yields and bets on more Fed rate rises (Reuters).

• Spot gold was up 1.1% at $4,157.39 an ounce at 9:30am ET on Tuesday, after touching a session low of $4,112.97 (Reuters).
• US gold futures rose 0.5% to $4,189.60. Silver slipped 0.1% to $60.89 and platinum fell 1.9% to $1,684.95.
• CME FedWatch data show markets pricing a 70% chance of a Fed hike in October and a 95% chance of an increase by December (Reuters).
• 'Today's move is just a correction from yesterday's losses. I still think there's some fairly significant headwinds for gold out there,' said Peter Grant of Zaner Metals.

Wall Street slips as yields stay high

US stocks gave back early gains on Tuesday as tech shares faded and Treasury yields stayed near their highest levels since 2007 (Yahoo Finance, CNBC).

• By mid-morning the S&P 500 was down 0.33% at 7,658.70, the Dow was off 0.66% at 51,140.26 and the Nasdaq was 0.17% lower (Yahoo Finance).
• The 10-year Treasury yield was around 5.28%, near Monday's peak, which Tradeweb data put at the highest since June 2007.
• Bitcoin was down 0.7% at about $83,110.
• Investors are waiting for Wednesday's PCE inflation data and Friday's jobs report.

Lagarde: energy shock 'too large to be ignored'

ECB President Christine Lagarde told the European Parliament's economic affairs committee in Brussels that higher energy prices are raising inflation risks, but there are no signs yet that they are becoming embedded (Reuters, ECB).

• The ECB raised its three key interest rates by 25 basis points earlier this month.
• Euro area inflation rose to 3.2% in August from 2.9% in July, while energy inflation jumped to 14.3% from 10.3% (ECB).
• ECB staff now expect inflation of 3.0% in 2026, 2.5% in 2027 and 2.1% in 2028, with growth of just 0.9% this year.
• 'We see higher inflation ahead but no signs yet that it is becoming embedded,' Lagarde said, adding that measured rate rises remain appropriate (Reuters).

Sources

• Reuters - Gold rises but strong Fed hike bets keep it near seven-week low
• Yahoo Finance (TheStreet) - Stock Market Today, 29 Sept 2026
• CNBC - Treasury yields waver near multiyear highs
• Reuters - ECB's Lagarde sticking to measured steps to quell inflation
• ECB - Lagarde at the hearing of the European Parliament's ECON committee