Gold fell below $4,350 an ounce on Wednesday, remaining under pressure as hawkish comments from Federal Reserve officials outweighed the disinflationary impact of weaker oil prices on the inflation and interest rate outlook. On Tuesday, Richmond Fed President Tom Barkin cautioned that inflationary shocks could take time to fade, while Boston Fed President Susan Collins said she supported last week’s rate increase due to concerns that future inflation could remain above the Fed’s 2% target.
At the same time, oil prices declined for a sixth straight session after President Trump said US officials had a “very good” meeting with Iranian representatives. Tehran indicated it could reopen the Strait of Hormuz within seven days if the US reduced military pressure and lifted its blockade of Iranian ports. The continued drop in oil prices has eased some worries about renewed inflationary pressures and the risk of further rate hikes.
Elsewhere, China’s gold imports through August surpassed 1,000 tons, already exceeding the full-year total for 2025, reflecting robust investment demand.