The morning briefing from Chapman Gold: what moved the gold market and why it matters. Prices in the banner above are live.
Gold slips below $4,300 as the dollar reaches a two month high
Gold was quoted around $4,268 an ounce on Friday, having spent Thursday under the $4,300 mark (Yahoo Finance, Fortune). The pressure is coming from the currency side rather than from any loss of appetite for the metal: the dollar has climbed to its strongest level in two months, which makes dollar priced bullion dearer for every buyer holding something else (Reuters via Kitco). For a UK dealer the sterling price has held up better than the headline, because a stronger dollar cuts both ways.
Hawkish Fed talk keeps a lid on the price
Several Federal Reserve officials have restated their support for last week's rate increase while warning that inflation risks have not gone away, and markets are now pricing in roughly a 70 per cent chance of a further rise in October (Kitco). Richmond Fed President Tom Barkin argued that the threat of more increases can temper business pricing expectations without slowing activity. Gold pays no interest, so every step up in expected rates raises the cost of holding it.
Investors are still buying the funds, whatever the price does
The selling in the spot price is not showing up in investment demand. Global gold backed exchange traded funds took in about $18bn in August, the second largest monthly inflow on record, lifting collective holdings 121 tonnes to an all time high of 4,189 tonnes and total fund assets to roughly $615bn (World Gold Council, reported by Kitco). Kitco's Gold SWOT of 21 September noted that ETF holdings had extended their buying streak to eight consecutive sessions. Price weakness and demand weakness are not the same thing.
Central banks keep adding, at a slower pace than last year
Central banks reported net purchases of 23 tonnes in July, with China adding 20 tonnes and Poland 8 tonnes (World Gold Council). Year to date reported buying stands at about 130 tonnes against roughly 160 tonnes over the same period a year earlier, so the official sector is still a net buyer but a more measured one. Poland remains the largest buyer of 2026 as it works towards a stated reserve target, and the Council's latest survey found 89 per cent of central bankers expect global gold reserves to rise over the next twelve months.
India returns to the shops ahead of Dhanteras and Diwali
Indian jewellery buying is picking up into the festive season, with dealers restocking, showroom visits rising and imports recovering: July imports roughly doubled on June, from about 20 tonnes to an estimated 40 tonnes (World Gold Council). First half demand was 281.5 tonnes, up 1.8 per cent by weight, while the money spent rose 72.5 per cent, which tells you exactly what the price has done. The detail worth noting in our trade is that retailers report 40 to 60 per cent of transactions are now part exchange of old gold.
Miners are digging more and paying more to do it
Global mine production reached 966 tonnes in the second quarter, an all time high for a June quarter and 2 per cent above the previous record (World Gold Council). Costs have moved with it: all in sustaining costs hit a record $1,785 an ounce in the first quarter, up 16 per cent year on year, driven by higher royalties, energy and corporate overheads. Margins are still at records because the price has run faster, but a cost base that rises with the gold price is a reminder that new supply gets no cheaper when bullion gets dearer.
Sources: Reuters, Kitco, Yahoo Finance, Fortune, Trading Economics and the World Gold Council. Compiled Friday 25 September 2026. Nothing here is investment advice; it is the news, read with a jeweller's eye. For what the market means in real terms, see The Gold Price, where the world is priced in gold.