Market moves: bullion and metals
Gold bounced after its sharpest daily dip in a week, hovering near $4,360 an ounce. By 8:23 a.m. Singapore time, spot prices were up 0.4% at $4,361.89. Silver gained 0.8% to $66.56 an ounce, and platinum and palladium also nudged higher.
Even as prices wobbled, money kept flowing into bullion-backed exchange-traded funds. In September alone, net inflows are around 50 tons, marking a third straight month of accumulation.
Oil steadied Tuesday after a four-day skid of more than 9%. Softer energy prices take some heat off inflation, which tends to be supportive for gold since lower interest-rate expectations improve the metal's appeal.
Fed signals and market reaction
Following last week's unanimous move to raise rates - the first hike in three years - traders are parsing Fed remarks. On Monday, Austan Goolsbee, the Chicago Fed President, said the central bank faces persistent supply shocks and might have to act in ways that impose economic stress. St. Louis Fed President Alberto Musalem said more hikes could be necessary to reach the inflation objective, which has remained out of reach for over five years.
Ryan McKay at TD Securities wrote that gold is "holding extremely strong" after the hike and hawkish tone, with falling energy costs offering a cushion. "Despite a hiking cycle being priced in, the broader precious metals landscape remains extremely favorable," he said, adding that short-term dips are "increasingly seen as a buying opportunity."
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Politics and spillovers
The drop in oil lined up with diminishing worries over Middle East export interruptions and a fresh diplomatic effort aimed at ending the US-Iran war. Later Tuesday in New York, President Donald Trump is due to speak at the United Nations General Assembly and has indicated a willingness to meet Iranian President Masoud Pezeshkian on the sidelines.
Investors are also watching a Trump-Xi summit this week. Ahead of the meeting, officials struck an upbeat tone, with the agenda expected to cover AI along with trade and investment. Over the weekend, US Treasury Secretary Scott Bessent described his talks with China's top trade official, Li Chenggang, as "very successful."
The dollar and the bottom line
The Bloomberg Dollar Spot Index was little changed after a 0.1% uptick the prior session, as metals rallied. For everyday investors, the mix of softer oil, a still-hawkish Fed and active diplomacy has kept gold resilient and ETF demand firm. If you are tracking where cash is quietly moving, that steady bid for bullion is worth noting.
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