Gold Prices Fall as Dollar Strengthens Ahead of Federal Reserve Minutes Fiona Craig Wed, October 7, 2026 at 5:33 AM EDT 1 min read GC=F -1.08% DX-Y.NYB +0.45% Gold coins ©2happy Gold prices declined on Wednesday as the US dollar strengthened and investors awaited minutes from the Federal Reserve's September policy meeting for further indications about the outlook for interest rates.
At 08:40 GMT, spot gold was down 0.9% at $4,126.02 an ounce, while gold futures declined 0.8% to $4,151.90 an ounce.
The US Dollar Index, which measures the currency against a basket of major peers, increased 0.4% to 102.26. A stronger dollar can increase the cost of dollar-denominated gold for buyers using other currencies.
Investors are awaiting minutes from the Federal Reserve's September meeting, when the central bank raised interest rates for the first time since 2023.
Projections released alongside the decision indicated that further rate increases could occur before the end of the year as policymakers address inflation, which has remained above the Fed's 2% target.
However, expectations for another rate increase at the Fed's next meeting have declined following comments from policymakers indicating less urgency to raise rates in October and weaker-than-expected employment data.
Higher interest rates can increase the opportunity cost of holding non-yielding assets such as gold, making the outlook for US monetary policy an important factor for bullion prices.
Central bank demand has continued to provide support to the gold market despite uncertainty surrounding interest rates, according to analysts at ING.
World Gold Council data cited by ING showed that central banks remained net buyers of gold in August, adding 39 tonnes during the month.
The purchases brought the year-to-date total to 170 tonnes, according to the data.
