Gold Extends Weakness As Dollar Rises On Rate Hike Bets

(RTTNews) - Gold prices dropped on Tuesday, extending recent weakness, as the U.S. dollar firmed up as comments from several Fed officials suggested the central bank will keep interest rates higher for longer.

Investors also closely followed the developments on the geopolitical front.

The dollar index climbed to 100.70 before easing to 100.60, still up 0.17% over previous close.

Gold futures for December were at $4,375.00 an ounce, down $8.90 or about 0.2%, from previous close.

Silver front month futures were down $0.420 at $65.405 an ounce, a little while ago.

Addressing the 81st session of the United Nations General Assembly, U.S. President Donald Trump said that while others had spoken about peace, he had "made peace". "While others have ignored threats, I have confronted them," he said.

Trump said he has to decide whether to make a deal with Iran or "annihilate" the country.

Meanwhile, investors look ahead to a potential meeting between Iranian President Pezeshkian and U.S. President Donald Trump.

After hiking interest rate by 25 basis points in the latest policy meeting, Fed Chair Kevin Warsh signaled that further rate increases could follow in the months ahead.

St. St. Louis Fed President Alberto Musalem and Chicago Fed President Austan Goolsbee also emphasized the need for additional tightening to curb inflation fueled by strong demand and rising energy prices.

In U.S. economic news, data from the ADP Research Institute showed US private employers added an average of 20,000 jobs per week in the four weeks ending September 5, 2026, up from an average weekly gain of 16,250 in the previous four-week period.

The Federal Reserve's Fifth District manufacturing index fell to -2 in September, marking its first negative reading in six months, down from 4 in August and contrasting with market expectations of an expansion in activity at 5, a report from the Federal Reserve Bank of Richmond showed.