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(Bloomberg) -- Gold edged higher as a slump in oil prices over the past few sessions reduced the chance of further interest-rate hikes by the Federal Reserve to contain inflation. Bullion was trading around $4,360 an ounce, reversing course after falling the most in a week the day before. Oil steadied on Tuesday after losing more than 9% over the previous four days on easing concern around Middle East exports and a renewed bout of diplomacy to end the US-Iran war. President Donald Trump is set to address the United Nations General Assembly in New York later Tuesday and has indicated that he’s open to meeting his Iranian counterpart, Masoud Pezeshkian, on the sidelines of the gathering. The decline in oil prices has reduced inflationary concerns, a tailwind for gold that typically benefits when rates are lower. Traders are also tracking comments by Fed officials for clues on the path for rates after the unanimous vote last week to hike for the first time in three years. Chicago Fed President Austan Goolsbee said Monday the US central bank cannot ignore repeated and persistent supply shocks, and must respond in a way that may cause economic hardship. St. Louis Fed President Alberto Musalem said additional rate rises may be needed to achieve the central bank’s inflation goal, which hasn’t been met in more than five years. Gold is “holding extremely strong” following the rate-hike with hawkish outlook, with falling energy prices offering support, Ryan McKay, an analyst at TD Securities, wrote in a note. “Despite a hiking cycle being priced in, the broader precious metals landscape remains extremely favorable,” with near-term weakness “increasingly seen as a buying opportunity,” he dded. Confidence in the long-term outlook for the metal has also prompted some dip-buying in recent weeks. There have been around 50 tons of inflows into bullion-backed exchange-traded funds so far in September, a third month of gain. Investors are also eyeing this week’s summit between Trump and Chinese President Xi Jinping, with officials offering upbeat assessments ahead of talks expected to cover artificial intelligence, trade and investment. US Treasury Secretary Scott Bessent described weekend meetings with China’s top trade negotiator Li Chenggang as “very successful.” Spot gold rose 0.4% to $4,361.89 an ounce at 8:23 a.m. in Singapore. Silver advanced 0.8% to $66.56 an ounce. Platinum and palladium edged higher. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed after rising 0.1% the previous session. More stories like this are available on bloomberg.com ©2026 Bloomberg L.P. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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