Gold remains steady amid subdued dollar, US Iran tensions

September 09, 2026 (MLN): Gold prices remained steady on Wednesday as the US dollar stayed subdued and markets weighed renewed hostilities between the US and Iran alongside upcoming inflation readings that could shape the interest-rate trajectory.

Currently, spot gold is slightly down 0.49% to $4,384.39 an ounce as of [10:10 am] PST, according to data reported by Mettis Global.

The dollar's continued softness made bullion cheaper for buyers holding other currencies, lending support to prices.

Investor attention is now turning to the release of the US producer price index on Thursday, followed by consumer price index data on Friday, both of which are expected to offer fresh clues on the Federal Reserve's policy path, according to CNBC.

Tensions in the Middle East escalated further, with Iran-backed Houthi forces in Yemen launching strikes on several Saudi cities, drawing another US ally deeper into the conflict.

Separately, US forces struck multiple Iranian oil tankers, while Iran retaliated with an attack on a US base in Jordan.

Brent crude extended its rally for a fourth consecutive session amid the escalation. Higher oil prices are typically seen as inflationary, as elevated energy costs work their way through broader consumer prices.

Per the CME FedWatch Tool, market participants are pricing in roughly a 60% probability that the Federal Reserve will raise interest rates at its next policy meeting.

 While gold is traditionally viewed as a hedge against inflation, higher rates tend to dampen its appeal since the metal generates no yield.

Among other precious metals, spot silver gained 0.4% to $66.00, platinum climbed 1% to $1,831.76, while palladium slipped 0.3% to $1,344.69.

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