Gold jumps to $4,366 as oil slips, dollar weakens

September 18, 2026 (MLN): Gold jumped higher on Friday, as falling oil prices and a subdued US dollar lent support, while market participants kept their focus on developments in the Middle East and the outlook for global monetary policy.

Currently, spot gold is up 2.37% to $4,365.66  an ounce as of [10:01 am] PST, according to data reported by Mettis Global.

The U.S Federal Reserve raised interest rates on Wednesday and flagged more hikes in the coming months, while Goldman Sachs kept its end-2027 gold price forecast unchanged at $5,400 despite the move, saying tighter policy is likely to slow bullion's rally but not derail it, according to CNBC.

The Bank of England held rates steady on Thursday but warned of a possible increase ahead, and the Bank of Japan raised rates to a 31-year high on Friday, pledging further action to counter inflation risks.

Oil prices fell 1 %, while the dollar stayed subdued after retreating from recent highs, with a weaker greenback making dollar-priced commodities cheaper for holders of other currencies.

Although gold is traditionally viewed as a hedge against inflation, higher interest rates can dampen its appeal by boosting the attractiveness of yield-bearing assets.

Among other precious metals, spot silver rose 0.7 % to $65.61 and was headed for a weekly gain, platinum gained 1 % to $1,785.80, and palladium added 0.2 % to $1,294.41.

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