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War Fears, Rate Hikes Push Gold Near Nine-Week Low
8 Oct
Summary
- Gold prices approached a nine-week low due to rising tensions.
- Investors are concerned about potential further US interest rate hikes.
- Fresh geopolitical concerns in the Strait of Hormuz impact inflation outlook.
Gold prices were trading near a nine-week low on October 8, 2026, following a significant 1.3% decline the previous day. This drop marked the lowest level for bullion since early August. The commodity's weakness is attributed to escalating geopolitical tensions in the Strait of Hormuz, which have amplified concerns about war-driven inflation.
Furthermore, investors are closely monitoring signals from the US Federal Reserve. Market participants are assessing the likelihood of at least one more interest rate increase by the end of the year. This anticipation of tighter monetary policy also contributed to the downward pressure on gold prices.