{"id":618015,"date":"2026-09-16T16:40:11","date_gmt":"2026-09-16T16:40:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/618015\/"},"modified":"2026-09-16T16:40:11","modified_gmt":"2026-09-16T16:40:11","slug":"a-hawkish-fed-wont-keep-gold-price-down-for-long-fxpros-kuptsikevich","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/618015\/","title":{"rendered":"A hawkish Fed won’t keep gold price down for long – FxPro’s Kuptsikevich"},"content":{"rendered":"

(Kitco News) – A fairly resilient economy, coupled with persistent inflation, has made higher interest rates in the second half of 2026 a foregone conclusion, which could weigh on gold<\/a> prices in the near term; however, one market strategist suggests that lower prices could represent a long-term buying opportunity.<\/p>\n

According to the CME FedWatch Tool, markets see a more than 90% chance that the Federal Reserve will raise interest rates by 25 basis points Wednesday afternoon. At the same time, markets see a nearly 80% chance of a second rate hike before the end of the year.<\/p>\n

In his latest precious metals note, Alex Kuptsikevich, Chief Market Analyst at FxPro, said that gold prices could catch a bid Wednesday afternoon if the Federal Reserve\u2019s projections meet these expectations.<\/p>\n

\u201cThe base-case scenario for the interest rate futures market is a tightening of monetary policy and the FOMC\u2019s forecast that it is prepared to do so again in 2026. This will stabilise the US dollar and is likely to suppress yields on long-term government bonds as fears subside that the Fed is losing control of the situation in the long term. Such a scenario is quite favourable for gold. If, however, the Committee forecasts three rate rises in its updated projections, the greenback will soar, whilst the precious metal will face a wave of sell-offs,\u201d he said.<\/p>\n

So far, the gold market is taking the threat of higher interest rates in stride, as prices have pushed back above an important near-term support level. Spot gold last traded at $4,334.80 an ounce, up 1% on the day.<\/p>\n

Kuptsikevich added that the risk for the precious metal is that the U.S. central bank could tilt more hawkish than expected. He pointed out that gold<\/a> could see a similar selloff if Federal Reserve Chair Kevin Warsh sticks to the same hawkish rhetoric he used in his speech at the annual Central Bank Symposium in Jackson Hole, Wyoming.<\/p>\n

However, looking beyond the near-term volatility, Kuptsikevich said that gold\u2019s medium- to long-term prospects remain positive. He added that everything depends on the U.S. dollar.<\/p>\n

\u201cOver the past three weeks, the strengthening of the dollar and rising yields on US Treasury bonds have weighed on the price of the non-interest-bearing precious metal. However, as soon as the greenback retreated, gold quickly launched a counter-attack,\u201d he said.<\/p>\n

Beyond the market\u2019s knee-jerk reaction, Kuptsikevich noted that a rate hike might not necessarily be positive for the U.S. dollar, as it could create some geopolitical uncertainty. (Kitco Global Index<\/a> shows how much of today’s gold move is the dollar versus the gold market itself.)<\/p>\n

\u201cA rate hike is sure to provoke discontent in the White House, whose pressure on the Fed is fuelling the \u2018debasement trade\u2019. US fiscal problems have not gone away, and the Treasury\u2019s attempts to intervene in the currency and debt markets are increasing demand for decentralised finance assets,\u201d he said. \u201cIn such circumstances, a fall in gold<\/a> prices in response to the Fed\u2019s decision to begin a cycle of rate rises could create ideal conditions for buying the metal.\u201d<\/p>\n

See live precious metals prices<\/a> for gold, silver, platinum and palladium \u2014 in USD, CAD and 12 more currencies.<\/p>\n

Disclaimer:\u00a0The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and\/ or damages arising from the use of this publication.<\/p>\n","protected":false},"excerpt":{"rendered":"(Kitco News) – A fairly resilient economy, coupled with persistent inflation, has made higher interest rates in the…\n","protected":false},"author":2,"featured_media":618016,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[13286,13278,13282,1152,13277,4404,13280,13279,13281,12858,1247,42,13285,6453,13269,13287,13274,13288,13276,43,13271,13272,13270,13273,238,13275,13284,450,2796,13283,40,38,41,39,7549],"class_list":["post-618015","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-bank-forecasts","tag-bitcoin-news","tag-central-banks","tag-charts","tag-crypto-news","tag-currency","tag-economic-reports","tag-ethereum-news","tag-forecasts","tag-global-economy","tag-gold","tag-headlines","tag-international-policy","tag-interviews","tag-kitco-news","tag-market-nugget","tag-metals","tag-mining-minutes","tag-mining-news","tag-news","tag-palladium","tag-pgm","tag-platinum","tag-platinum-group-metals","tag-politics","tag-precious-metals","tag-rare-earth-metals","tag-roundups","tag-silver","tag-tech-metals","tag-top-news","tag-top-stories","tag-topnews","tag-topstories","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/618015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=618015"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/618015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/618016"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=618015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=618015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=618015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}