Gold gains about 7% over the last week.
Gold consolidated after a five-day rally, with investors turning their focus to the Federal Reserve’s interest-rate path ahead of the annual Jackson Hole gathering this week.Bullion edged down to near $4,640 an ounce, pulling back from a three-month high struck in the previous session. The metal has still gained about 7 per cent over the last week, supported by the US Treasury’s unexpected intervention in the bond market.The recent efforts to control the cost of the US debt pile have revived interest in the so-called debasement trade that helped power gold’s record-breaking rally last year, when investors bought the precious metal and avoided sovereign debt and currencies to protect themselves from runaway budget deficits.Gold’s marked rebound in recent weeks has also taken the metal above the 200-day moving average that’s often viewed as an important measure of momentum. In a sign of wider investor participation, bullion-backed exchange-traded funds tracked by Bloomberg added more than 28 tons last week, the most since January.“Precious metals are finding comfort in this higher range,” TD Securities analysts Ryan McKay and Bart Melek wrote in a note, while pointing to limited short-term upside due to elevated energy prices and persistent inflation risks. “We caution this rally may be too early for a renewed run back to record highs,” they said.Investors will be seeking clues to the Fed’s approach to inflation when Kevin Warsh makes his first major speech as chairman of the central bank on Friday. The much-anticipated address at the Jackson Hole symposium offers Warsh an opportunity to counter criticism that he hasn’t been forthright with his views on the economy.Meanwhile, Fed Bank of Boston President Susan Collins said she supported holding interest rates steady for now, provided progress is seen in bringing inflation back toward the central bank’s 2 per cent target. Higher borrowing costs are typically a headwind for non-yielding bullion.Inflation fears eased Tuesday as Treasury yields fell by five to seven basis points across the curve and oil dropped on optimism about de-escalation in the Middle East. Crude extended declines after Iran and Oman held talks about establishing a “temporary joint maritime corridor” that would allow some shipping via the Strait of Hormuz to resume.Traders are also positioning for the US Personal Consumption Expenditure Index due Wednesday, which will give further clues on the temperature of the American economy.Gold slipped 0.3 per cent to $4,644.49 an ounce at 1:07 p.m. in Singapore. Silver was 0.7 per cent higher at $69.11 an ounce. Platinum and palladium rose. The Bloomberg Dollar Spot Index, a gauge of the US currency, was up 0.1 per cent.More stories like this are available on bloomberg.comPublished on August 26, 2026
