The morning briefing from Chapman Gold: what moved the gold market and why it matters. Prices in the banner above are live.
Gold ends the week lower after hawkish remarks from the Fed chair
Gold slipped on Friday, easing toward $4,560 an ounce and its weakest level in a week, after markets read comments from Federal Reserve Chair Kevin Warsh as hawkish. Warsh warned that inflation is not meaningfully slowing and said policymakers need confidence that underlying price pressures are easing before the work is done. Gold pays no interest, so any signal that rates will stay higher for longer tends to weigh on it. (Yahoo Finance, Trading Economics)
That pullback came off a three month high: spot gold had reached about $4,635 an ounce on Tuesday, its highest since mid May, helped by a softer dollar and by the US Treasury's bond buyback plans keeping a lid on yields. The dollar index has lost roughly 0.8 per cent this month, which makes gold cheaper for buyers outside the United States. The week was a rally met by a reality check rather than a change of direction. (CNBC)
China's central bank extends its buying streak to 21 months
The People's Bank of China added about 20 tonnes of gold in July, its twenty first consecutive month of purchases and the largest single month addition since October 2023. Official buyers have kept accumulating even with bullion holding well above $4,000 an ounce. Price is evidently not the deciding factor for a reserve manager diversifying away from the dollar. (Bloomberg)
Central banks bought 288.9 tonnes in the second quarter
World Gold Council data puts net central bank purchases at 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 to 345 tonnes. Uzbekistan, Kazakhstan, Jordan and the Czech Republic were among the other buyers adding material amounts. This is the steady bid underneath the market that does not show up in daily price noise. (World Gold Council)
Exchange traded funds take in a third straight month of money
Physically backed gold ETFs added about $5.5bn in August, a third consecutive month of inflows, lifting total assets 5 per cent to roughly $407bn and another month end record. North American and European funds led, while Asian funds continued to see money leave. Collective holdings stand at around 4,068 tonnes, still below the record 4,176 tonnes set on 27 February 2026. (World Gold Council)
India's demand recovery builds ahead of the festive season
The World Gold Council's latest India update reports firmer jewellery demand, steady investment interest and a rebound in imports, with import value more than doubling in July to $4.16bn from $1.97bn in June, and estimated volumes rising to 40 to 45 tonnes from around 20 tonnes. Jewellers are restocking ahead of the festive season and manufacturers report higher order flows. Consumers there treated the recent price action as a chance to buy rather than a reason to wait. (World Gold Council)
Record output, and record costs to get it out of the ground
Global average all in sustaining costs for gold producers rose 5 per cent quarter on quarter and 16 per cent year on year to $1,785 an ounce in the first quarter of 2026, the twenty eighth consecutive year on year increase, with higher royalties, corporate overheads and energy prices behind it. Mine supply is meanwhile running at records, with first half output reported at 1,867 tonnes, about 3 per cent above the same period of 2025. More metal is being produced than ever, and each ounce of it is more expensive than ever to produce. (World Gold Council, MINING.com)
Sources: Yahoo Finance, CNBC, Bloomberg, Trading Economics, the World Gold Council and MINING.com. Compiled Saturday 29 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.