Gold slips to $4,434 on Fed rate-hike fears

August 31, 2026 (MLN):  Gold extended its losses on Monday, sliding to its lowest level in nearly two weeks after Federal Reserve Chair Kevin Warsh indicated that further interest rate hikes could be necessary to keep inflation in check.

Currently, spot gold is down 0.46% to $4,434.25 an ounce as of [10:41 am] PST, according to data reported by Mettis Global.

Following Kevin Warsh's remarks, market expectations for a Fed rate hike in September jumped to 57%, up sharply from 36% beforehand, according to the CME FedWatch tool.

Gold, while traditionally seen as an inflation hedge, tends to become less attractive when interest rates rise, since it offers no yield of its own.

Attention this week turns to a batch of US labour market data, including job openings figures, the ADP employment report, weekly jobless claims, and the closely watched nonfarm payrolls report, according to CNBC.

On the geopolitical side, US forces reportedly targeted two Iranian missile launchers on Iran's Larak Island on Sunday, according to a US official  the first such American strikes on Iran since late July. The development sent oil prices higher.

Elsewhere in the metals complex, spot silver eased 0.5% to $66.01 per ounce, platinum slipped 0.5% to $1,810.64, and palladium declined 1.7% to $1,397.11.

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