Gold moved lower on Tuesday as rising U.S. Treasury yields and higher crude prices coincided with increased expectations that the Federal Reserve could raise interest rates at its September meeting.

At 04:46 ET (08:46 GMT), XAU/USD declined 1.6% to $4,377.84 an ounce, while gold futures fell 1.2% to $4,426.26. XAG/USD was down 2.4% at $64.98 an ounce and XPT/USD declined 1.2% to $1,774.70.

The U.S. Dollar Index increased 0.2% to 99.59.

September Fed rate expectations increase

Gold has fallen approximately $320 from last week’s peak near $4,697. The decline has occurred alongside increases in oil prices and government bond yields.

On Friday, gold dropped more than 3% after Federal Reserve Chair Kevin Warsh reiterated the central bank’s focus on returning inflation to its 2% target.

CME FedWatch indicated that markets were assigning around a 66% probability to a 25-basis-point rate increase at the Fed’s September meeting, up from approximately 40% before Warsh’s Jackson Hole address.

Oil prices have meanwhile moved higher following renewed military exchanges between the United States and Iran. Brent crude rose above $91 per barrel and U.S. crude traded above $86 as markets considered potential risks to energy supplies.

The benchmark 10-year U.S. Treasury yield increased to around 4.78%, its highest level since early 2025, as government bond yields also rose across major global markets.

Tony Sycamore, senior market analyst at IG, linked the approximately $300 decline in gold from last week’s high to Warsh’s more hawkish Jackson Hole comments and renewed tensions around the Strait of Hormuz.

Sycamore said the combination of higher oil prices and rising bond yields had increased pressure on gold ahead of the Federal Reserve’s next meeting. He estimated that markets were pricing around 60 basis points of rate increases through June 2027.

August rally remains part of gold’s broader performance

The latest decline follows a gain of nearly 10% for gold during August, when the U.S. Treasury unexpectedly increased purchases of longer-dated government debt.

Those purchases contributed to lower borrowing costs and a weaker dollar. Concerns about the level of U.S. government debt and the possibility of currency devaluation were also among the factors influencing demand for the precious metal.

The debasement trade was one factor behind gold’s approximately 65% increase in 2025, as investors sought assets considered potential hedges against expanding government deficits and weaker currencies.

Gold-backed exchange-traded funds recorded inflows, while central bank purchases also contributed to demand.

Employment reports could provide further signals for Fed policy

Gold continued to trade below its 200-day moving average, which stood near $4,526, after moving beneath the technical level following Warsh’s speech.

Sycamore said the decline had not changed his medium-term view that gold established a base around the late-June low near $3,942. He continues to favour purchases during pullbacks and maintains a longer-term upside target of $5,000.

Market attention will turn to job openings data, the ADP employment report and Friday’s nonfarm payrolls figures for additional information on U.S. labour market conditions ahead of the Federal Reserve’s September policy meeting.

Crude oil prices moved higher on Tuesday as renewed military activity involving the United States and Iran increased attention on potential supply disruptions in the Middle East.

At 0739 GMT, Brent crude futures were up $1.18, or 1.3%, at $91.67 per barrel. U.S. West Texas Intermediate crude increased $1.27, or 1.48%, to $87.03.

The increase followed comments from U.S. President Donald Trump on Monday indicating the possibility of additional strikes against Iran after the first direct exchange of attacks between the two countries since late July.

“The tit-for-tat missile exchanges between the US and Iran bring validation to those who believe that even if not a ‘forever war’, this conflict will run and run,” PVM analyst John Evans said.

Mediation efforts continue as Hormuz traffic remains reduced

Iranian President Masoud Pezeshkian said Tuesday that Iran would respond immediately if the United States resumed compliance with its commitments under the interim peace agreement signed in June.

Qatar and Oman are among the countries involved in mediation efforts aimed at reaching an agreement to reopen the Strait of Hormuz. The waterway accounted for approximately one-fifth of global oil supplies before the conflict began in late February.

Kpler data showed around five visible commodity vessels passing through the strait per day on Monday, compared with an average of approximately 14 over the previous 10 days. None of the five vessels were liquid tankers.

Shipping risks were also highlighted after the United Kingdom Maritime Trade Operations agency said a tanker reported being struck by three projectiles while leaving the Strait of Hormuz on Tuesday. No casualties or environmental effects were reported.

“Despite satellite tracking firms suggesting oil flowing through Hormuz is around 6 million barrels per day, that is well below pre-conflict levels,” ANZ analysts said in a note.

Oil inventories add to market considerations

ANZ analysts also pointed to global oil inventories as a factor being monitored by the market.

“In the meantime, the buffers the global oil market has been relying on are becoming exhausted. U.S. inventories are nearing minimum levels, while China’s ability to keep imports low will be tested as seasonal demand picks up.”

The combination of reduced shipping activity through the Strait of Hormuz and inventory levels remains among the factors being assessed by crude markets.

Analysts surveyed by Reuters in August expect oil prices to remain above $80 per barrel during 2026 as shipping disruptions continue.

Blencowe Resources (LSE:BRES) reported that graphite from its Orom-Cross Project in Uganda was used across several components of a hypersonic rocket that reached Mach 5.5 during a U.S. test programme.

The flight took place on August 18 in Las Cruces, New Mexico, and was conducted by Pluto Aerospace alongside American Energy Technologies Co (AETC), Purdue University and U.S. Government Agencies. Blencowe Chief Operating Officer Iain Wearing attended the test.

The solid-fuel rocket reached acceleration approaching 150G, an increase from the performance recorded during an earlier test programme in April.

Orom-Cross graphite tested across multiple rocket components

Graphite supplied from Orom-Cross was incorporated into an ablative rocket nozzle insert, anti-friction and ice-phobic coatings applied to the rocket’s fins, and the lithium-ion battery used to power the vehicle’s altimeter.

AETC manufactured graphite mouldings for rocket and missile exhaust nozzles using Orom-Cross concentrates supplied by Blencowe. The material replaced a proportion of the synthetic graphite typically used in these applications.

The lithium-ion battery incorporated natural graphite supplied by Blencowe alongside recycled graphite produced through AETC’s direct recycling process. According to the company, the battery contained no synthetic graphite.

The August flight used a substantially larger motor than the rocket tested in April. Further orbital testing is planned for the fourth quarter of 2026.

Blencowe continues testing Orom-Cross graphite applications

Blencowe said the testing programme is examining the potential use of Orom-Cross graphite in specialist aerospace and defence applications as the company advances the project towards production.

The company said successful qualification in these applications could create opportunities for additional offtake relationships and strategic funding, although no new agreements were announced in the supplied information.

Blencowe Executive Chairman Cameron Pearce said: “These results continue to highlight the emergence of Orom-Cross graphite as an important source of high-quality graphite products for use in military and aerospace applications. There are relatively few graphite projects worldwide capable of supplying the quality of products required for these specialist applications, which may open new offtake relationships and strategic opportunities and places Orom-Cross in a strong position moving forward as we advance towards first production.”

“As we complete funding for P1 Production and move to building the first stage of operations, we are continuously testing new products and adding new offtakers, each of which builds further value within the Project. Our strategy is to differentiate Orom-Cross from other graphite projects by targeting the most lucrative markets available to us, through both our products and strategic relationships.”

WPP (LSE:WPP) plans to cut up to 1,000 additional jobs by the end of 2026 as part of a restructuring programme under chief executive Cindy Rose, according to a Financial Times report published Tuesday.

The British advertising group also plans to sell non-core businesses and reduce its property footprint as part of the changes, the report said.

The latest planned reductions would follow approximately 11,000 job cuts made by WPP since the beginning of 2025.

WPP workforce stood at 97,388 in June

WPP employed 97,388 people as of June 30, 2026, according to the Financial Times, which cited people familiar with the company’s plans.

The reported restructuring comes as advertising companies adjust their operations amid reduced client spending and increased use of artificial intelligence tools for certain tasks.

WPP’s programme is expected to use AI as part of efforts to change its cost structure and operations.

London property footprint set to be reduced

WPP is also working to lower property-related expenses, according to the report.

The company currently operates from three separate buildings on the south side of the River Thames in London. These operations are expected to be consolidated into two locations.

The planned workforce reductions, property consolidation and disposal of non-core businesses form part of the restructuring measures reported by the Financial Times.

Bodycote (LSE:BOY) shares rose 4.5% to 953.85p during Tuesday’s session after the company agreed to a cash takeover by U.S. private equity firm Veritas Capital.

Under the agreement, Veritas will acquire the Macclesfield-based heat treatment specialist for 940 pence per share in cash. Bodycote’s board has unanimously recommended the offer to shareholders.

The transaction, which will be carried out through Veritas’s Vulcan Alpha Bidco vehicle, values Bodycote’s equity at approximately £1.65 billion and the company at around £1.85 billion including debt.

Veritas raises offer from earlier indicative proposal

The formal 940p-per-share offer is above the indicative proposals disclosed in early August, when Veritas and rival bidder CVC Advisers had submitted conditional proposals of approximately 914p to 915p per share.

The takeover agreement was announced on the deadline set by the UK Takeover Panel under Rule 2.6(a) of the City Code on Takeovers and Mergers, by which Veritas and CVC Advisers were required to announce a firm intention to make an offer or state that they did not intend to proceed.

Bodycote shares traded above the agreed 940p offer price following the announcement.

Bodycote reaches 52-week high

The shares reached an intraday 52-week high of 957p, compared with the agreed acquisition price of 940p.

The move came as broader equity markets traded lower, with the S&P 500 down 0.4% and the Nasdaq declining 0.8%. The FTSE 250, of which Bodycote is a constituent, also traded against a cautious market backdrop.

The takeover announcement and the increase from Veritas’s previous indicative proposal were the principal company-specific developments accompanying Tuesday’s rise in Bodycote shares.