Money markets priced an 86% probability that the U.S. Federal Reserve will raise its benchmark interest rate by 25 basis points at its September 15-16 FOMC meeting. Swaps traders are also building in high odds of another quarter-point increase in December.

The pricing follows US inflation data, though uncertainty over political pressure on the Fed remains. An analyst attributed the limited decline in gold prices to a prediction that the US Federal Reserve will raise interest rates in September 2026.

Reserve Bank of Australia deputy governor Andrew Hauser said inflation is Australia's one big problem and that if inflation stays above target, the RBA would raise interest rates further than it otherwise would. Francesco Pesole, an analyst at ING, noted that recent increases in energy prices are adding to inflation concerns, allowing the Federal Reserve to maintain an aggressive tone on monetary policy.