Gold Falls as Oil Surge, Bond Sell-Off Lift Treasury Yields

Gold prices fell sharply on September 1, 2026, as a surge in oil prices and a global bond sell-off pushed Treasury yields higher, overshadowing the precious metal's traditional safe-haven appeal. The decline extended a losing streak that began after Federal Reserve Chair Kevin Warsh's hawkish remarks at the Jackson Hole symposium, with traders now pricing in a significant probability of a U.S. interest rate hike later this month. The immediate catalyst for the selloff was escalating military tensions between the United States and Iran. Renewed hostilities sent Brent crude oil prices surging past $91 per barrel, stoking fears of supply disruptions and persistent inflationary pressure. This energy market shock contributed to a broad sell-off in government bonds worldwide, pushing the yield on the 10-year U.S. Treasury note to approximately 4.78%, its highest level since early 2025. Spot gold fell 1.7% to $4,362.57 per ounce in New York trading, while silver dropped 2.7% to $64.79. The decline marked gold's third consecutive day of losses, its longest losing streak since early July, and placed the metal about $320 below its peak near $4,697 from the previous week. The stronger U.S.