September 1, 2026
Market Overview 26-08-2026 to 01-09-2026
Precious Metals Market – A Sharp Decline in Prices!
Last week, most major precious metals markets recorded more significant price declines. The sell-off in precious metals was driven primarily by geopolitical tensions in the Middle East. They contributed to a new wave of rising oil prices and an increased risk that the Fed could raise interest rates in the near future.
Last week, the global gold price fell by more than 4.6% and reached USD 4,377 per troy ounce on September 1.
The decline in the gold price was directly affected by the military escalation between the US and Iran in the Middle East. After US military forces struck two Iranian missile launchers in the Strait of Hormuz, Iranian military forces announced attacks on US military bases in Jordan.
Although geopolitical conflicts often contribute to rising precious metals prices, in the US-Iran war, fears of high inflation and high interest rates are producing the opposite results.
With reduced shipping flows and a problematic situation in the Strait of Hormuz having been observed for some time due to the military conflict, a significant rise in oil prices has recently been recorded once again.
Rising global oil and gas prices are contributing to a significant increase in inflation in developed markets and increasing the likelihood that a decision to raise interest rates will be made in the United States in the near future. Following the resumption of military action in the Middle East, the preliminary probability that the Fed will raise interest rates as early as this September has risen to 66%.
Rising interest rates in the US market would make dollar-denominated precious metals (gold, silver, etc.) a less attractive investment option for holders of foreign currencies. Taking this into account, for some investors, the military escalation between the US and Iran is becoming one of the reasons to reduce their precious metals investment portfolios.
The global silver price fell by more than 4.9% between August 26 and September 1 and reached USD 64.73 per troy ounce.
Although the decline in silver prices was primarily caused by the intensifying military conflict in the Middle East, there is no shortage of developments in the global market that are boosting the popularity of precious metals and could help prevent further corrections in the silver price. One of the more significant developments is the renewed trade war between Canada and the US.
On August 22, after the governments of the United States and Canada failed to reach a trade agreement, new 50% US tariffs came into effect on some goods imported from Canada, with an annual import value of around USD 20 billion. US President Donald Trump also stated that, from the beginning of 2027, the US will raise import tariffs to 50% on cars, trucks and various auto parts imported from Canada.
The Canadian government took retaliatory action. It was announced that, from September 8, Canada will impose mixed tariffs of 15–50% on goods imported from the US. The approximate value of the imported products amounts to USD 20 billion.
The global palladium price experienced minimal changes between August 26 and September 1. On September 1, the palladium price reached USD 1,330 per troy ounce.
The global platinum price fell by more than 3.6% over the same period and reached USD 1,765 per troy ounce.
The global copper price experienced minimal changes between August 26 and September 1. On September 1, the copper price reached USD 14,211 per tonne.
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