Gold edges lower as traders weigh Fedspeak and US-Iran talks

[SINGAPORE] Gold edged lower as traders monitored progress in talks between the US and Iran and comments by US Federal Reserve officials for clues on how energy costs will influence the path forward for interest rates.

Bullion was trading around US$4,340 an ounce, erasing a moderate gain from the previous session. Several Fed policymakers have voiced concerns about the outlook for inflation since the central bank voted unanimously last week to hike for the first time in three years.

Richmond Fed president Tom Barkin warned on Tuesday (Sep 22) it could take time for inflationary shocks to wane and there was a risk elevated pressures could become entrenched. He stopped short of signalling whether additional tightening was needed.

Boston Fed president Susan Collins in a LinkedIn post said “a somewhat more restrictive federal funds rate will help ensure that inflation durably returns to target”, given the labour market is “on a better footing”.

Investors are also tracking a renewed focus on diplomatic efforts to end the US-Iran war. US President Donald Trump said US officials had a “very good” meeting with Iranian envoys in New York, reviving fragile hopes for a new diplomatic off-ramp, after he earlier threatened to annihilate the country.

Oil extended a decline on Trump’s latest comments, as well as reports that Saudi Arabia aims to restore crude exports via its East-West pipeline in the coming days, enabling Riyadh to resume a bypass of the Strait of Hormuz. West Texas Intermediate has now fallen more than 10 per cent since last Tuesday’s close.

Gold has been sensitive to recent swings in oil as investors assess whether elevated energy prices will keep inflationary pressures strong enough to prompt further Fed rate increases.

Higher borrowing costs typically undermine support for bullion because it does not pay interest.

“Gold remains caught in a tug-of-war between safe haven demand and rising-rate pressures,” and likely to be sensitive to headlines around oil and interest rates in the near term, said Priyanka Sachdeva, an analyst at Phillip Nova.

SEE ALSO

Singapore’s gold hub plan gets lift with DBS vault expansion

Gold and gas oil are helping to build India’s economic resilience

Gold displays volatile movements

‘A good hedge and reasonably liquid’: World’s biggest money managers are rebuilding gold positions

More

Meanwhile, gold imports into top consumer China have been stronger than ever in 2026, helped by a slump in international prices since February and a firmer yuan.

Purchases through August topped 1,000 tonnes, surpassing the total for the whole of 2025, according to the latest customs data, which goes back to 2017.

Spot gold fell 0.6 per cent to US$4,334.27 an ounce at 11 am in Singapore. Silver declined 1 per cent to US$66.39 an ounce, after gaining 1.6 per cent the day before.

Platinum and palladium were also lower. The Bloomberg Dollar Spot Index, a gauge of the US currency, was 0.1 per cent higher, after rising for the previous three sessions. BLOOMBERG