Gold retreats amid Dollar strength, rate outlook

Gold prices slipped on Wednesday, with spot gold down 0.58% at $4,322.17 an ounce at 12:34 pm PST, according to Mettis Global data. Traders priced in the prospect that major central banks will keep borrowing costs high for longer as they fight stubborn inflation. The precious metal's appeal was further dented by a dollar that held close to a two-month peak, making bullion pricier for buyers holding other currencies.

Gold is usually regarded as a shield against inflation, yet it loses ground when higher rates pay more on interest-bearing investments. The Federal Reserve lifted its key rate by a quarter point to a 3.75-4.00% band last week and flagged a further increase before year-end. Tightening moves by Japan's central bank and the ECB in recent weeks add to that backdrop.

Elsewhere, US President Donald Trump warned that Iran could face serious consequences unless a deal ends the ongoing war, while also saying a settlement might arrive soon as diplomacy continues at the United Nations. Among other metals, silver fell 0.4% to $66.78 an ounce, platinum slid 0.8% to $1,818.21, and palladium lost 0.4% to reach $1,302.61. BMI analysts left their 2026 average gold forecast at $4,400 per ounce, citing geopolitical risk and steady central bank purchases, according to CNBC.