Gold Surges Alongside US Treasuries as Oil Price Slide Deepens
London, September 18, 2026: Gold prices rallied sharply alongside U.S. Treasury bonds as a deeper decline in oil prices eased concerns over inflation and reduced pressure on markets following the Federal Reserve’s latest interest-rate increase.
Spot gold climbed as much as 2.8% to above $4,380 an ounce, recovering from three consecutive sessions of losses. The precious metal was trading around $4,400 an ounce on Friday and was on track for a weekly gain, according to market reports.
Oil Prices Fall, Inflation Concerns Ease
The decline in crude prices has become a key factor supporting both gold and government bonds. Oil prices fell as indications emerged that some supply disruptions in the Middle East could ease, including efforts by Saudi Arabia to partially restore flows through a major pipeline.
Lower oil prices can reduce expectations for persistent inflation, potentially easing pressure on central banks to maintain or increase interest rates.
Treasury Yields Retreat
U.S. Treasury yields also declined after initially rising sharply following the Federal Reserve’s 25-basis-point rate increase on September 16. The Fed’s move was its first rate hike since 2023.
The retreat in Treasury yields provided additional support for gold because the metal does not generate interest income. When bond yields rise significantly, holding non-yielding gold can become relatively less attractive; falling yields can reduce that disadvantage.
Fed Policy Remains a Key Risk
Despite the latest gold rally, the interest-rate outlook remains an important factor for precious-metal markets. The Federal Reserve signalled that additional tightening could be possible, while analysts noted that higher rates and a relatively firm U.S. dollar could limit gold’s gains in the near term.
Investors are also continuing to allocate funds to gold-backed exchange-traded funds. Bloomberg data cited in market reports showed inflows into tracked gold ETFs for eight consecutive days.
The combination of falling oil prices, easing Treasury yields and continued demand for bullion has therefore put gold back in focus after a volatile week in global markets.