# Gold Prices Drop on Rally

> Gold falls as Fed rate hike nears.
- Title: Gold Prices Drop on Rally · TradingView | Shortify
- Summary: Gold falls as Fed rate hike nears. Gold prices drop after Fed rate hike expectations and Middle East tensions limit gains.
- Keywords: xauusd, fed, gold, us dollar, middle east, treasury yield, technical analysis, business, finance, Prices, Drop, Rally
- Source: TradingView — https://tradingview.com/chart/XAUUSD/V3mMyZTo-XAU-USD-Sell-on-rallies
- Published: 2026-09-16T10:05:51+00:00
- Read time: 1 min
- Topics: xauusd, fed, gold, us dollar, middle east, treasury yield, technical analysis, business, finance
## Gold Prices Edge Higher
Gold prices edged higher on Wednesday, currently trading near $4,340.
## Fed Rate Hike Expected
The Federal Reserve is expected to raise interest rates by 25 basis points at this meeting.
## Market Focus Shifts
Market focus has shifted to updated economic projections (including the "dot plot") and the press conference by Chair Kevin Warsh.
## Inflation and Dollar Strength
Risks of energy-driven inflation support expectations for further Fed tightening, a global bond sell-off has pushed the 10-year US Treasury yield above 5% (a high since 2007), and escalating tensions in the Middle East are bolstering the US Dollar Index.
## Technical Analysis
Technically, gold has peaked and pulled back on the daily chart, falling below the 20-day moving average (MA20); the short-term bullish structure has been compromised.
## Price Action
On the four-hour chart, bulls and bears are locked in a tug-of-war; heavy selling pressure follows rebounds, and bullish counter-attacks lack sufficient strength, leaving the market in a state of fluctuation as it seeks a support base.
## Key takeaway

Gold prices drop after Fed rate hike expectations and Middle East tensions limit gains.