Topline
The price of gold declined again Tuesday morning, another consecutive day of loss after the metal hit a 15-week high in late August as expectations the Federal Reserve will soon raise interest rates, which typically depresses metals prices, grow.
The price of gold declined again Tuesday morning. (Photo by GEORG HOCHMUTH / APA / AFP via Getty Images) / Austria OUT
APA/AFP via Getty Images
Key Facts
The price of gold is about $4,414.50 as of 10:45 a.m. Tuesday, down about 1.5%, though it hit a low of about $4,374.10 earlier in the morning, down about 2.5%.
The price of silver is about $65.01 as of 10:45 a.m., down more than 2%, after hitting a low price of $64.35 earlier in the trading session.
Gold and silver prices have declined daily since late last week, coming down from the 15-week highs they reached, which analysts have largely attributed to growing expectations the Federal Reserve will raise interest rates, possibly as soon as at its next meeting later this month.
Ole S. Hansen, head of commodity strategy at Saxo Bank, said rate hike expectations are one of the primary factors weighing on the price of gold right now, also citing a strengthening dollar, which is up about 0.1% Tuesday morning.
Expectations the Fed may raise interest rates rose on Friday after Federal Reserve chair Kevin Warsh suggested the central bank may have “work to do” if inflation does not return to its 2% target, in a speech Hansen previously described as “hawkish.”
Why Was Gold Rising In August?
Gold had been on a significant upswing throughout August, ending what had been a mostly stagnant summer, before the price began declining late last week. Earlier this month, the Treasury Department announced it would ramp up buybacks of long-dated government debt, a move analysts said helped gold’s price spike. Last week, gold rose to a 15-week high, which analysts also attributed to a weakening U.S. dollar.
Will The Federal Reserve Raise Interest Rates This Year?
Analysts say it seems more likely the Fed will raise interest rates soon after Warsh’s Friday speech. CME Group’s FedWatch tool says there is a 66.2% chance of a rate hike at the Fed’s September meeting, whereas before Warsh’s speech, the odds of a rate hike in September were about 36%. The odds of a rate hike by the Fed’s October or December meeting are even higher, at 75.9% and 89.7%, respectively.
tangent
President Donald Trump weighed in on interest rates Monday evening, telling reporters he believes the United States should have the “lowest interest rates anywhere in the world.” “In the old days … if we announced good numbers, interest rates went down. Now, if you announce good numbers, interest rates go up because they’re so afraid of inflation,” Trump said. Trump, though, said he respects Warsh and said the Fed chair will “do what he has to do” on interest rates. Trump has long pushed for the Fed to lower interest rates and was a frequent critic of Jerome Powell, the previous Fed chair, whom he clashed with over interest rates.
what to watch for
Some important economic measures scheduled for this week could influence metals prices. The ADP employment report is due out Wednesday, while the Bureau of Labor Statistics’ monthly jobs report is scheduled for Friday.
key background
Gold and silver prices have come down from historic highs reached earlier this year. In January, gold hit a price of about $5,600, while silver hit an all-time high of $121. The metals faced a historic price rally that lasted months between last year and early 2026, buoyed by factors including tariffs, international tensions, demand from technological industries and interest rate cuts. Prices crashed in late January after Trump named Warsh as his pick to lead the Fed, as Warsh was seen as less likely to slash interest rates. Metals prices have also generally declined throughout the Iran war, as gold and silver have traded inversely with oil, which has risen in price throughout the conflict.
further reading
Fed Chair Kevin Warsh Says Inflation Still Too High In First Jackson Hole Speech (Forbes)
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