Precious Metals Market Update: The Pressures Behind the Price

September 22, 2026

The latest Bank of England decision offers a reminder that inflation pressure has not disappeared. On September 17, the bank announced that it would keep its benchmark rate at 3.75%. Three of its nine policymakers wanted an increase to 4%. British inflation had reached 3.1% in August, above the bank’s 2% target. For metals investors, this is part of the interest-rate environment surrounding gold; it is not, by itself, a prediction of where bullion prices will go. Read the decision.

The effect on the physical trade is easier to overlook. In a World Gold Council interview published September 4, Argor-Heraeus chief executive Robin Kolvenbach discussed how a rising gold price can increase costs and risks for refiners, and how metal lease rates affect their business. Lease rates are the cost of borrowing metal. His account provides context for understanding the supply chain: a higher price can increase the money needed to handle inventory. It does not establish that every refinery has stopped hedging or that every dealer must reduce payouts. Listen to the refinery discussion.

Documentation is another development to watch. LBMA’s proposed Responsible Gold Guidance version 10 would distinguish investment gold as its own material category and replace the broader “recycled gold” terminology with “secondary gold.” The proposal was released in June; its published timetable calls for another consultation in the fourth quarter and final guidance in December. These remain proposed standards, rather than an already effective requirement for customers selling jewelry. Their relevance is the attention being given to identifying where gold comes from as it moves through the trade. Review the proposal and timetable.

Three international pressures also appear in the Bank of England’s latest assessment: higher energy prices amid the Middle East conflict, an approximately 5% increase in its cited global agricultural and livestock price index since July, and price pressure in sectors supplying artificial-intelligence technology. The bank expects further effects from energy costs on consumer prices over coming quarters. That is the bank’s economic assessment—not a forecast of precious-metals returns. Read the meeting minutes.

For current physical-metal availability and pricing, visit the Pryce House Metals Desk. For information about purchasing eligible metals through an established self-directed retirement account, visit Precious Metals IRAs.

This update is general information, not investment, tax or legal advice. Prices and transaction terms change. Forecasts and proposals are attributed to their sources and may change.