The morning briefing from Chapman Gold: what moved the gold market and why it matters. Prices in the banner above are live.
Gold closes the week above 4,600 dollars, the highest since mid May
Gold settled at 4,607.35 dollars an ounce on Friday, up 2.03 per cent on the day and around 5 per cent on the week, its third consecutive weekly advance. That is the highest the metal has traded since the middle of May. In sterling terms it lifts the melt floor under every gold piece on the shelf, which is the number that matters to a dealer rather than the headline. (Trading Economics)
The rally was made in Washington, not in the jewellery trade
The move followed the US Treasury unexpectedly increasing its planned purchases of longer dated government debt, which pushed bond yields and the dollar lower. The intervention has raised questions about Washington's ability to manage rising borrowing costs and reinforced demand for gold as an alternative store of value. Treasury Secretary Scott Bessent has indicated that further buybacks could follow. (Trading Economics)
Fed minutes and the oil price cut the other way
Minutes from the Federal Reserve's July meeting showed several committee members arguing for higher rates rather than cuts, and rising oil prices could limit further gains in gold by keeping inflation pressure elevated and trimming expectations for rate reductions. The US campaign to intensify economic pressure on Iran has weakened hopes of a quick reopening of the Strait of Hormuz, supporting energy prices. Lower rates reduce the cost of holding gold, so this is the part of the picture that argues against a straight line higher. (Trading Economics, Yahoo Finance)
Central banks bought 288.9 tonnes in the second quarter
Official sector buying reached a net 288.9 tonnes in the second quarter of 2026, up 62 per cent on the 177.9 tonnes bought in the same quarter of 2025, taking the first half total to 345 tonnes. China's central bank added about 20 tonnes in July, its twenty first consecutive month of accumulation and its largest single month since October 2023, with Uzbekistan, Kazakhstan, Jordan and the Czech Republic also among the buyers. (World Gold Council, Bloomberg)
Exchange traded funds kept adding through July
Global gold exchange traded funds took in a net 3 billion dollars in July, lifting holdings by 23 tonnes to 4,068 tonnes and total assets under management to 530 billion dollars. Europe led with 2 billion dollars, its second strongest month of the year, ahead of Asia at 616 million dollars and North America at 71 million dollars. Year to date inflows through July stood at 11 billion dollars, equivalent to 39 tonnes. (World Gold Council)
India restocks for the festive season while supply stays flat
The World Gold Council's August update on India describes a recovery taking shape, with jewellery demand firming, imports rebounding and retailers rebuilding inventory ahead of the festive season, though high prices may yet limit what consumers actually buy. On the supply side, total gold supply held steady at 1,269 tonnes in the second quarter, a 2 per cent rise in mine production offset by a 6 per cent fall in recycling as sellers held back their old jewellery. (World Gold Council)
Sources: Trading Economics, World Gold Council, Bloomberg, Yahoo Finance. Compiled Saturday 22 August 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.