Gold Hits Two-Month Low on Fed Rate Hike Signals

Key Facts

1Gold prices dropped to a two-month low following signals from the Federal Reserve that it may not be finished with interest rate hikes.

Gold prices dropped to a two-month low following signals from the Federal Reserve that it may not be finished with interest rate hikes. Reuters reported that the decline reached its lowest point since August 5, 2026, with spot gold closing at $4,109.90 per ounce on October 7, 2026, as market sentiment shifted regarding future monetary policy.

Minutes from the Federal Open Market Committee meeting held on September 16, 2026, indicated that most participants assessed another rate increase would likely be appropriate by year-end, with the target range currently at 3.75% to 4.00%. In equity markets, mining stocks faced a selloff as Newmont closed at $113.54 and Barrick Mining at $39.18 on October 7, 2026, while the 10-year Treasury yield touched approximately 5.36%.