The morning briefing from Chapman Gold: what moved the gold market and why it matters. Prices in the banner above are live.
Gold claws back ground after the Fed's first hike in three years
Gold climbed about 2% to around $4,360 an ounce on Thursday, recovering from a near six-week low touched on Wednesday as investors reassessed their positions after the Federal Reserve raised rates. Bargain buyers returned during the session and a softer oil market eased some of the inflation pressure (Yahoo Finance; Fortune).
The Fed raises rates and signals it may not be finished
The Federal Reserve voted unanimously on Wednesday to raise its benchmark rate by a quarter point to 3.75 to 4.00%, its first increase since 2023. Chair Kevin Warsh cited a strengthening economy, a lack of improvement in summer inflation and geopolitics, and the committee's projections point to one more rise this year (CBS News; GoldSilver).
Wednesday's sell-off, in numbers
Bullion had gained more than 1% earlier on Wednesday, reaching $4,365.57, before falling as much as 1.3% once the press conference reaffirmed the Fed's concern about inflation and lifted the dollar. December futures opened Thursday 2% below Wednesday's close before the recovery took hold (Bloomberg; Nation Thailand).
Yields step back from 5% and the dollar retreats
The US 10-year Treasury yield fell back to around 4.93% after briefly exceeding 5% earlier in the week, and the dollar eased from the seven-week high it reached after the decision. Markets are now pricing roughly a 53% chance of a further move in October, which keeps rate expectations the main driver for gold in the near term (BullionVault).
China's central bank steps up its gold buying
The People's Bank of China added 650,000 ounces to its reserves in August, its largest purchase since 2023, and it did so even as prices rose. Official sector demand remains one of the steadiest supports under the market (Bloomberg).
India heads into the festive season with cautious optimism
The World Gold Council describes the Indian market as showing cautious festive optimism, with September imports moderating and domestic discounts widening after August's price surge. Demand is expected to improve as the festive and wedding season progresses, though high prices and volatility continue to restrain discretionary jewellery buying (World Gold Council).
Sources: Yahoo Finance, Fortune, CBS News, GoldSilver, Bloomberg, Nation Thailand, BullionVault, World Gold Council. Compiled Friday 18 September 2026. Nothing here is investment advice; it is the news, read with a jeweller's eye. For what the market means in real terms, see The Gold Price, where the world is priced in gold.