- Gold prices fall below 4 140 USD per troy ounce, extending the drop from August to over 10%.
- Rising US Treasury yields and higher oil prices increase the opportunity cost of holding gold.
- Chinese investors take profits ahead of Golden Week, adding downward pressure on precious metals.
- Markets await US PCE inflation data to gauge future Federal Reserve rate decisions.
- Gold prices fall below 4 140 USD per troy ounce, extending the drop from August to over 10%.
- Rising US Treasury yields and higher oil prices increase the opportunity cost of holding gold.
- Chinese investors take profits ahead of Golden Week, adding downward pressure on precious metals.
- Markets await US PCE inflation data to gauge future Federal Reserve rate decisions.
Gold continues the sell-off that began in the second half of August, falling below $4,140 per troy ounce today, losing nearly 4%. The decline from the August local peak has now reached more than 10%.
Figure 1: Gold (2026)
Source: XTB Research, 28.09.2026
The sell-off is largely driven by a familiar correlation: a lack of positive news regarding US-Iran talks is pushing up oil prices, raising inflation concerns, increasing bets on Fed rate hikes, and driving up Treasury yields.
Figure 2: Brent Crude Oil (Front-Month Futures Contract) and 10-Year Bond Yields (2026)
Source: XTB Research, 28.09.2026
The US 10-year Treasury yield is up around 5 bps today to 5.25%, its highest level since 2007. The opportunity cost of holding precious metals, non-yielding assets, is rising by the day, noticeably reducing their appeal despite a highly volatile geopolitical landscape.
Pressure is being further compounded by profit-taking from some Chinese investors ahead of Golden Week, a traditional holiday period that marks one of the most important annual vacation weeks in China (1-7 October).
Investors are currently awaiting Wednesday's release of US PCE inflation data for August, which could temper growing concerns over inflationary pressures across the Atlantic and trigger a correction in the bond market.
—
Michał Jóźwiak, Financial Markets Analyst at XTB
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