Gold, Silver and Precious Metals Daily — 2026-09-11
Spot gold prices hovered near $4,380–$4,400 as hot August Producer Price Index (PPI) data lifted odds of a Federal Reserve rate hike at the upcoming September 15-16 meeting to approximately 60%. While gold ETFs attracted nearly $2 billion in inflows, silver saw notable outflows from major funds, creating a divergence in paper positioning. Meanwhile, the People's Bank of China extended its buying streak to 22 consecutive months, adding over 20 tonnes to its reserves in August.
Gold, Silver and Precious Metals Daily — 2026-09-11
Top developments
Fed Rate Hike Odds Surge After Hot PPI Data
Gold prices faced pressure as the US Producer Price Index (PPI) for August came in hotter than expected, pushing the probability of a rate hike at the Fed’s September 15-16 meeting toward 60%. This shift has weighed on non-yielding assets like gold, which slipped from recent highs to trade near $4,380–$4,400 per ounce. The market is now pricing in a more hawkish stance from the Federal Reserve, challenging the narrative of imminent monetary easing that had supported bullion earlier in the year.
Divergence in ETF Flows: Gold In vs. Silver Out
Despite price volatility, physically-backed gold ETFs recorded inflows of nearly $2 billion this week, indicating strong institutional demand for safe-haven assets. In stark contrast, silver investors pulled out of the largest silver ETFs, reflecting a split in sentiment between the two precious metals. This divergence suggests that while gold is being bought as a hedge against macroeconomic uncertainty and potential policy missteps, silver is facing profit-taking or reduced industrial demand expectations in the short term.
China’s Central Bank Extends Buying Streak to 22 Months
The People's Bank of China (PBoC) increased its gold reserves by 650,000 ounces (approximately 20.22 tonnes) in August, marking the 22nd consecutive month of net purchases since resuming accumulation in November 2024. Total reserves now stand at 76.73 million ounces (approx. 2,386.57 tonnes). The pace of buying slightly accelerated compared to July’s additions, reinforcing the trend of central banks diversifying away from dollar-denominated assets amidst geopolitical tensions.
Silver Volatility and Indian Market Dynamics
In India, silver prices surged by Rs 2,300 per kg on Wednesday, Sept 9, even as gold edged lower due to rising inflation concerns linked to Middle East tensions. The local market remains sensitive to global geopolitical risks and currency fluctuations, with silver showing stronger momentum than gold in specific weekly intervals. Domestic jewellers are watching the rupee-dollar exchange rate closely, as a weaker rupee typically supports higher domestic bullion prices despite global headwinds.
Local view
China: Local financial media highlighted the PBoC’s consistent accumulation strategy, noting that the August purchase volume exceeded July’s figures. Analysts cited by Phoenix Net emphasize that this steady buying is a strategic move to de-dollarize reserves and hedge against global financial instability.
India: The Economic Times Hindi reported continued pressure on gold prices due to rising crude oil costs, which fuel inflation fears and support the case for higher interest rates globally. However, silver showed resilience, with local traders noting a "flash" in silver prices driven by global industrial demand signals and speculative buying in Mumbai and Delhi markets.
Context & numbers
- Spot Gold Price: Trading between $4,380 and $4,400 per ounce as of early September 11, 2026, following a dip from earlier highs.
- Fed Meeting: The next FOMC decision is scheduled for September 15-16, 2026. Market-implied probability of a hike is ~60% post-PPI data.
- China Reserves: PBoC holdings rose to 76.73 million ounces (2,386.57 tonnes) in August 2026. Monthly addition: ~20.22 tonnes.
- ETF Flows: Gold ETFs: +$2 billion (weekly). Silver ETFs: Net outflows observed in major funds.
- Indian Silver Price: Surged Rs 2,300/kg on Sept 9, reaching approximately Rs 2,43,400 per kg in Delhi markets.
On the radar
- US CPI Data Release: The upcoming Consumer Price Index (CPI) report for August is critical. If inflation remains sticky, it could solidify the rate hike expectation, further pressuring gold. If it cools, it may trigger a relief rally.
- FOMC Meeting (Sept 15-16): The primary driver for the rest of the month. Any guidance on future hikes or balance sheet reduction will directly impact real yields and gold prices.
- Geopolitical Tensions: Continued uncertainty in the Middle East, specifically regarding oil tanker security and Strait of Hormuz stability, remains a wild card for safe-haven flows into gold.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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