Gold rose on Wednesday, extending gains as oil prices stabilized following a steep multi-day sell-off that had intensified worries about energy-driven inflation and further interest-rate hikes from the Federal Reserve.
Spot gold (XAU/USD) climbed 0.4% to $4,359.40 an ounce as of 21:06 ET, while gold futures gained 0.3% to $4,396.85. Silver (XAG/USD) rose 0.6% to $66.43 an ounce, and platinum (XPT/USD) advanced 0.3% to $1,809.03. The US dollar index edged lower to 100.39.
Oil prices steadied on Wednesday after shedding more than 9% over the previous four sessions. The earlier rout had raised concerns that tighter energy costs could force the Fed to keep rates higher for longer, a dynamic that weighed on non-yielding bullion. With crude stabilizing, those pressures eased slightly, supporting gold's recovery.
Institutional demand for gold continues to underpin prices. Approximately 50 tonnes of gold flowed into bullion-backed exchange-traded funds so far in September, putting the sector on track for a third consecutive month of inflows, according to ANZ. Chinese demand remained a standout driver: total Chinese gold imports reached 1,000 tonnes in the first eight months of 2026, while Chinese gold ETFs added roughly 44 tonnes in August alone. The People's Bank of China accelerated its own purchases to around 20 tonnes in August.
On the policy front, Federal Reserve officials signaled that additional rate increases remain possible if inflation pressures persist. Chicago Fed President Austan Goolsbee warned that ongoing supply shocks could necessitate a policy response, while St. Louis Fed President Alberto Musalem stated that further hikes may be needed to bring inflation back to target.
Geopolitical developments also lingered in the background. President Donald Trump was scheduled to address the United Nations General Assembly in New York, where he indicated openness to meeting Iranian President Masoud Pezeshkian on the sidelines — a shift from his earlier threat to "annihilate" Iran if the conflict continued. Saudi Arabia, a key OPEC+ producer, remains central to any potential supply dynamics affecting oil markets.
