Overview

Gold prices rose sharply on Thursday, with the spot price gaining 1.9% to $4,474.09 per ounce at 15:13 ET (19:13 GMT) and futures climbing 2.4% to $4,521.16 per ounce, briefly breaching the $4,500 level. The rally was underpinned by a weakening U.S. dollar and a retreat in Treasury yields.

Treasury Yield Movement

The benchmark U.S. 10‑year Treasury yield fell 2.5 basis points to 4.769%, while the 2‑year yield dropped 5.2 basis points to 4.334%, reversing the multi‑year‑highs seen earlier in the week.

Fed Commentary

Federal Reserve Governor Christopher Waller, speaking in a Reuters NEXT interview, noted that although inflation remains above the Fed’s 2 % target, recent data show signs of disinflation and he would be inclined to keep the federal‑funds rate at its current level. His remarks were described as less hawkish than those of Fed Chair Kevin Warsh at the Jackson Hole conference. New York Fed President John Williams echoed the view of easing cost pressures, and Treasury Secretary Scott Bessent added that interest rates are likely to fall once the Middle‑East conflict is resolved and oil prices retreat.

Market Focus

Analysts highlighted that the upcoming August non‑farm payrolls report will provide further guidance on the Fed’s policy path, noting that labor market softness could create a dual‑mandate dilemma for the central bank.

Oil Market Context

Despite heightened tensions in the Middle East, oil prices made modest moves. Brent crude futures rose 0.1% to $95.70 per barrel and West Texas Intermediate increased 0.6% to $91.60 per barrel, while both benchmarks remained on strong weekly gains of 8% and 9.4% respectively.

Geopolitical Backdrop

The article referenced an escalation in U.S.–Iran tensions over the Strait of Hormuz, including reported drone and missile strikes on U.S. bases in Kuwait and aggressive actions by Iran. President Donald Trump posted a graphic indicating that oil flow through the strait had fallen to 18 million barrels per day from 20 million barrels pre‑conflict.

Contributors

The report was compiled by Vahid Karaahmetovic, Roushni Nair and Jaiveer Shekhawat and originally published on 3 September 2026, with an update on 4 September 2026.