Gold falls to $4,322 as oil surge stokes inflation fears

September 14, 2026 (MLN): Gold prices retreated on Monday as a sharp rally in oil markets intensified inflation worries, strengthening the case for the US Federal Reserve to lift interest rates at this week's policy meeting.

Currently, spot gold is down 0.61% to $4,321.59 an ounce as of [11:58 am] PST, according to data reported by Mettis Global.

The pullback followed last week's release of US consumer price data, which showed inflation picking up pace in August, with core price growth posting its sharpest rise in four months  bolstering the case for tighter monetary policy, according to CNBC.

Market pricing now reflects an 86.5% probability of a Fed rate increase at its Tuesday-Wednesday meeting, according to the CME FedWatch Tool, sharply higher than the roughly 67% odds seen before last week's inflation print.

The Bank of Japan is also expected to raise rates at its meeting on Friday, as sticky inflation and steady economic growth add to the case for further monetary tightening among major central banks, against a backdrop of climbing energy prices and unresolved tensions in the Middle East.

Gold is traditionally viewed as a hedge against inflation, but higher borrowing costs diminish the attractiveness of the metal, which yields no interest.

Crude oil prices surged more than 2% on Monday after renewed Houthi strikes targeted Saudi Arabia and Iranian forces attacked vessels in the Gulf, adding to supply-side pressure following the shutdown of a major Saudi pipeline.

Diplomatic efforts in the region suffered a setback after talks between Iran and Gulf states were pushed back.

Elsewhere in the metals complex, spot silver dropped 0.7% to $64.02 per ounce, platinum held steady at $1,796.90, and palladium showed little movement at $1,298.80.

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