Gold Falls to 3‑Week Low as Dollar Strengthens and Fed Hike Odds Surge

Gold prices slid into a third straight session on Tuesday, dropping 2.4% to $4,374.10 an ounce on the Comex and 1.7% to $4,362.57 in spot markets. The decline marked the metal’s longest losing streak since early July and pushed December delivery to its lowest level since August 19.\n\nThe pullback erased the 2026 advance, leaving bullion only 0.7% higher for the year and about 20% below the record close of $5,419.83 on January 28.\n\nSilver followed a similar path, falling 3.2% to $64.83 an ounce before settling at $65.48, a 2.3% decline. One ounce of gold now buys roughly 67 ounces of silver, down from 70 at the end of July.\n\nBond market dynamics are the main driver of the slide. Ten‑year U.S. Treasury yields hovered near 4.77%, while UK 10‑year yields surged 16 basis points to 5.22%. Brent crude stayed above $92 amid renewed Middle East tensions that raised concerns about shipments through the Strait of Hormuz. A stronger dollar and higher yields weigh on a non‑yielding asset like gold.\n\nFederal Reserve signals also added pressure. Governor Michael Barr warned the Fed should be ready to raise rates if inflation does not ease, while Chairman Kevin Warsh’s remarks at Jackson Hole underscored that inflation remains a priority. Senior commodity strategist Ryan McKay of TD Securities said the combination of Warsh’s comments and the global bond sell‑off is directly behind the metal’s weakness.\n\nGold mining stocks retreated on Tuesday: Eldorado Gold down 3.2%, Agnico Eagle 2.8%, Equinox Gold 2.7%, Alamos Gold 2.7% and Gold Fields 2.5%. Despite the dip, the sector has seen strong monthly gains, with the NYSE Arca Gold Miners Index up 33% in August – its best August performance since 1994 – and the VanEck Gold Miners ETF recording its largest monthly inflows since February.\n\nOver the past month, individual miners have posted impressive returns: Eldorado 44%, Equinox 40%, Gold Fields 39%, AngloGold Ashanti 38%, Coeur Mining 38%, Hecla Mining 38%, Wheaton Precious Metals 36%, Agnico Eagle 34% and Newmont 32%. Silver producers benefited from a 20% rally earlier in August, though that momentum has since faded.