Gold futures slipped to a near two-week low on Aug. 31, 2026 as elevated Treasury yields and a more hawkish Federal Reserve outlook pressured the metal. XS.com's Rania Gule says the move looks like a natural pullback after gold's recent rally.
Gold futures traded 0.2% lower at $4,442.49 a troy ounce on Aug. 31, 2026, after earlier touching a near two-week low of $4,395.89.
The 10-year Treasury yield traded around 4.71%, with markets raising expectations for a September rate increase after Fed Chairman Kevin Warsh's Jackson Hole remarks. Ewa Manthey, commodities strategist at ING, says persistent inflation and the prospect of Fed rate increases risk lifting yields and the dollar, limiting gold's recovery.
Earlier, in Asian trade, gold fell below the $4,600 level, a move Rania Gule says is likely a natural correction on profit-taking after a strong upward rally. She says the environment remains fundamentally supportive for gold, but the market has grown increasingly sensitive to expectations around U.S. monetary policy. Spot gold dropped 0.6% to $4,426.48 a troy ounce during that session.
A higher interest rate environment typically weighs on nonyielding assets like gold.
Source: The Wall Street Journal
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