Expectations of Further Fed Tightening Push Gold to a Seven-Week Low

Gold fell below $4,200 an ounce in Asian trading on Monday, 6 Mehr 1405 (September 28, 2026), hitting its lowest level since August 5, according to FXStreet. Trading Economics put the price at $4,199.13, down 2 percent, while Sahmino's own price data showed $4,197.22, down 2.09 percent, as of 8 a.m. Tehran time.

According to FXStreet, the Federal Reserve's hawkish signals earlier this month and bets on another rate hike in October have kept US bond yields near multi-year highs, while geopolitical uncertainty has supported the dollar. Trump's rejection of Iran's proposal to reopen Hormuz has kept oil prices elevated, reinforcing expectations of continued tightening. Markets this week await the Fed's preferred inflation gauge and US jobs data.

According to Trading Economics, gold has lost 5.45 percent over the past month but is still 9.54 percent higher than a year ago; its all-time high of $5,608.35 was set in January 2026.