Gold Price Falls, FOMC Minutes Signal Fed Could Raise Interest Rates

There is something odd about the decline in gold on Wednesday, October 7, 2026. According to FXStreet, the yellow metal barely moved once the FOMC meeting minutes were released. The pressure had already formed earlier through rising yields of bonds and the US dollar. 

The document merely locked in concerns that already existed: Federal Reserve is still keeping the door open for one more interest rate hike this year. As a result, world gold prices closed down 1.28% at USD 4,109.90 per troy ounce.

Key Takeaways

• Spot gold closed down 1.28% at USD 4,109.90 per troy ounce on October 7, 2026, after briefly touching USD 4,066.
• The FOMC minutes show Fed officials still see one more interest rate hike before the end of the year as possible.
• High Treasury yields and a stronger dollar pressured gold, while buying by China's central bank held back its decline.

Gold Price Today: Falls to USD 4,109.90

According to Bisnis.com citing Kitco, spot gold closed weaker by 1.28% at USD 4,109.90 per troy ounce on Wednesday. 

The daily move was quite wide. In an FXStreet report, XAU/USD briefly touched USD 4,066, its lowest level in two months, then recovered to around USD 4,115 and reclaimed the USD 4,100 level.

So, gold did not fall freely. The price briefly broke through an important level, but buyers came back in and held it around USD 4,100. Even that was not enough to change direction, because the price structure still showed lower highs and lower lows. 

At the time this article was written, gold price had risen to USD 4,134. Source: TradingView 

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Contents of the FOMC Minutes That Pressured Gold

The minutes released on Wednesday covered the FOMC meeting of September 15-16, 2026. According to FXStreet, all members supported the September interest rate hike. The reasons behind it varied:

• Many participants saw it as protection against inflation remaining above target.
• Others viewed it as a way to prevent inflation from spilling over into other prices.
• Some participants called it an adjustment toward a neutral interest rate higher than expected.

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The most pressure on gold came from the forward direction. Bisnis.com reported that the majority of Fed officials still expect one more hike before the end of the year. 

Officials judged that inflation developments were not yet convincing enough that prices would return to the 2% target sustainably. The minutes said another hike at the end of the year "was still possible", according to a Bisnis.com quote.

The minutes also showed inflation risks remained tilted to the upside. Price pressures from investment and AI adoption are starting to increase, while the impact of trade tariffs on inflation is starting to diminish, according to Bisnis.com.

Two Fed officials also spoke the day before, according to FXStreet. Jeffrey Schmid of the Kansas City Fed said an additional hike was needed to contain high inflation. Mary Daly of the San Francisco Fed judged that further adjustment depends on data.

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Treasury Yields and the Dollar Also Weigh

Gold does not pay interest, so high interest rates make it less attractive. That is why movements in bond yields are very influential.

Data from both sources showed:

• 10-year Treasury yield briefly touched around 5.36%, its highest level in 24 years according to FXStreet, then fell to around 5.27-5.28%.
• US Dollar Index (DXY) rose 0.40% to 102.24, according to FXStreet.
• WTI crude fell 1.66% to USD 88.45.

According to Bisnis.com, the combination of higher interest rate expectations, rising bond yields, and a stronger dollar made gold's position increasingly pressured.

Money markets have also adjusted expectations. Data from Prime Terminal cited by FXStreet showed the odds of a rate hike at this month's meeting at only 19%, while the odds of a hold were 80%. However, Bisnis.com noted the market still priced in the possibility of a hike in December, which limits gold's upside room.

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Gold Support and Resistance Levels

Technically, gold's trend is still bearish. Both sources provide a similar map of levels.

Support:

• USD 4,100 as the main footing according to FXStreet, and the USD 4,050-4,000 range according to Bisnis.com.
• USD 3,996, the July 29 swing low.
• USD 3,941, this year's lowest level according to FXStreet.

Resistance:

• USD 4,150, which according to Bisnis.com needs to be reclaimed for pressure to ease.
• USD 4,200, then the 100-day SMA at USD 4,267 and the 50-day SMA at USD 4,331 according to FXStreet.

The RSI indicator still shows negative momentum. As long as the price has not returned above USD 4,150-4,200, short-term sentiment tends to be cautious.

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Factors Holding Back Gold's Decline

Although pressured, gold still has support. China's central bank extended its gold purchases to 23 consecutive months, according to FXStreet. The decline in oil prices was also said to hold back gold's correction below USD 4,100 and open the possibility of a recovery.

Going forward, the market awaits initial jobless claims data on Thursday and the University of Michigan consumer sentiment survey on Friday. According to Bisnis.com, gold's short-term movement depends heavily on the direction of the dollar, Treasury yields, and changes in Fed policy expectations.

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Conclusion

Gold prices fell 1.28% to USD 4,109.90 after the FOMC minutes showed Fed officials still opened the possibility of one more interest rate hike before the end of 2026. 

The pressure came from high Treasury yields and a stronger dollar. Gold purchases by China's central bank and weaker oil prices acted as buffers.

The USD 4,100 level is a watched footing, while USD 4,150-4,200 is an area that needs to be reclaimed for pressure to ease. The next price direction is difficult to predict because it depends on economic data and the Fed's stance. This article is for information purposes, not investment advice.

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FAQ

1. What is the world gold price today?
At the close of trading on Wednesday, October 7, 2026, spot gold was at USD 4,109.90 per troy ounce according to Kitco via Bisnis.com. Prices can change quickly, so check again before making a decision.

2. Why did gold prices fall?
Gold was pressured by the Fed's interest rate hike signal from the FOMC minutes, high Treasury yields, and a stronger US dollar. Gold does not pay interest, so it is less attractive when interest rates are high.

3. What are the FOMC Minutes?
The FOMC Minutes are the minutes of the Federal Open Market Committee meeting released a few weeks after the meeting. This edition of the minutes covered the September 15-16, 2026 meeting and was released on October 7.

4. Will the Fed raise interest rates again?
The minutes said one more hike at the end of the year is still possible, but it has not been decided. According to Prime Terminal, the odds of a hike at this month's meeting are only 19%.

5. Where is gold's current support level?
The nearest support is at USD 4,100, then the USD 4,050-4,000 range and USD 3,996. If broken, this year's lowest level at USD 3,941 could be tested.

6. What is holding back gold's decline?
China's central bank bought gold for the 23rd consecutive month. The decline in oil prices also helped hold back the correction.

7. Can gold rise again?
A recovery may occur if the price returns above USD 4,150-4,200, but there is no certainty. The direction depends on the dollar, Treasury yields, and interest rate expectations.