Gold rebounds to £3,258 an ounce, over 3% above last week's low

Gold has climbed back to around £3,258.91 a troy ounce this morning, according to live pricing from GOLD.co.uk, working out to roughly £104.78 a gram before dealer costs. That is up 1.62 per cent, or £51.89, over the past week, and more than 3 per cent above last week's low of £3,159.92. In dollar terms, gold is holding in the $4,355 to $4,375 range, according to market reports this morning.

The recovery follows a volatile week for the metal. Gold sold off hard in the run-up to the Federal Reserve's meeting on 15 and 16 September, as surging oil prices and Treasury yields near 5 per cent fuelled expectations of a US interest rate rise. The Fed duly raised its benchmark rate a quarter point to 3.75 to 4.00 per cent, its first hike since 2023, but gold has bounced back since as oil prices eased and some of that yield pressure faded.

Attention now turns to October. The Fed's own projections point to at least one further increase before the end of the year, and markets are pricing in roughly a 53 to 60 per cent chance of another rate rise at next month's meeting. Since gold pays no interest, further tightening would typically weigh on prices, though a hawkish Fed has so far failed to stop this week's rebound.

Silver, meanwhile, is trading at £49.59 an ounce, or about £1.59 a gram, putting the gold to silver ratio at roughly 66. For UK buyers, these are spot prices only: the all-in cost of a coin or bar adds the dealer's premium and delivery on top. This is market information, not financial advice.