Gold Price Today: XAU/USD Falls Below $4,300 as Fed Rate-Hike Bets Lift Yields

Key Takeaways

• International gold fell to approximately $4,295–$4,300 per troy ounce on September 2, down around 0.7% on the day.
• Rising Treasury yields, a firmer dollar and growing expectations of a September Federal Reserve rate hike pressured bullion.
• Traders are awaiting the ADP employment report and Friday’s US nonfarm payrolls for further policy signals.

Gold Extends Its Decline Below $4,300

International gold prices extended their pullback on Wednesday, September 2, with XAU/USD falling below the psychologically important $4,300 level.

Gold traded around $4,295–$4,300 per troy ounce, compared with approximately $4,329 in the previous session. The metal has now surrendered a significant portion of the gains recorded in late August, although it remains almost 6% higher over the past month and more than 20% above year-ago levels.

The latest decline followed Tuesday’s sharp sell-off, when spot gold dropped to its lowest level since August 19. Earlier Asian trading on Wednesday saw bullion near $4,321.80 before renewed selling pushed it toward $4,300.

Higher Bond Yields and a Stronger Dollar Pressure Gold

The US 10-year Treasury yield climbed to approximately 4.81%, approaching its highest level since January 2025. The dollar index also strengthened toward 99.8.

Higher yields increase the opportunity cost of holding gold, which does not generate interest. The pressure intensified after Federal Reserve Chair Kevin Warsh signalled that policymakers could tighten monetary policy further if inflation did not show a convincing return toward the 2% target.

Markets are now pricing an approximately 70% probability of a September rate hike, compared with around 36% before Warsh’s Jackson Hole remarks.

Rising oil prices have reinforced these expectations. Brent crude advanced above $95 per barrel as tensions involving the US and Iran disrupted activity around the Strait of Hormuz. While geopolitical uncertainty can support safe-haven demand for gold, higher energy prices are also increasing inflation concerns and strengthening the case for tighter monetary policy.

This rate-and-inflation channel has so far outweighed gold’s traditional safe-haven appeal.

US Employment Data Becomes the Next Gold Catalyst

Attention now turns to Wednesday’s ADP employment report, followed by weekly jobless claims, ISM services data and Friday’s August nonfarm payrolls report.

Stronger-than-expected employment figures could reinforce expectations of a September rate increase, keeping upward pressure on Treasury yields and the dollar. Weaker labour-market data could reduce those expectations and provide gold with an opportunity to stabilise.

Following the break below $4,300, the next notable downside area is around $4,247. On the upside, gold would need to recover above approximately $4,347–$4,396 to ease the immediate selling pressure.