Gold falls below £3,180 an ounce as markets brace for the Fed's rate decision

Gold has slipped to around £3,176.56 a troy ounce today, according to live pricing from BullionByPost, working out to roughly £102.13 a gram before dealer costs. In dollar terms the metal fell below $4,300 an ounce, its lowest level in more than a month, extending a third consecutive weekly decline.

The drop comes as investors brace for the Federal Reserve's rate decision, due tomorrow, Wednesday 16 September. Markets are pricing in roughly a 90 per cent chance the Fed raises US interest rates by a quarter point, its first hike since 2023, after inflation data came in hotter than expected. Gold pays no interest, so higher rates tend to make cash and bonds relatively more attractive, and a stronger dollar alongside Treasury yields above 5 per cent have added further pressure this week.

Despite the slide, gold remains well up on the year: prices are still around 15 per cent higher than 12 months ago, even after falling roughly 3.5 per cent over the past month. Much now hinges on tomorrow's announcement and the tone of the Fed's statement, which traders will scrutinise for hints about the path of rates into 2027.

For UK buyers, £3,176.56 an ounce is only the spot starting point. The all-in price of a coin or bar adds the dealer's premium and delivery on top, so it is worth comparing quotes before buying. This is market information, not financial advice.