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 $4,375 for a second straight weekly gain
Gold rose above $4,380 an ounce on Friday, recovering from earlier losses in the session to settle at $4,375.50, a gain of $25.95 or 0.60 per cent on the day. That secured a second consecutive weekly advance. Saturday and Sunday are non trading days, so the Friday close is the level the trade carries into Monday. (Trading Economics)
Cooler inflation data cuts the odds on a September rate rise
July's Consumer Price Index came in at 0.1 per cent for the month and 3.4 per cent year on year, with core CPI steady at 2.5 per cent. Combined with weak nonfarm payrolls, traders pared bets on a September Federal Reserve rate rise by more than 20 percentage points in a week, leaving roughly a one in three chance priced in. Lower rate expectations reduce the opportunity cost of holding metal that pays no yield. (Texas Precious Metals, Trading Economics)
China's central bank extends its buying run to 21 months
The People's Bank of China added about 19.9 tonnes of gold to its reserves in July, its largest monthly addition since October 2023 and the twenty first consecutive month of accumulation. Steady official sector buying has been one of the firmest supports under the price through this year, and it reflects a longer running diversification away from the dollar rather than any short term view on the market. (Bloomberg)
Jewellery volumes fall to a post pandemic low, but spending rises
The World Gold Council's second quarter figures put jewellery demand at 278 tonnes, down 17 per cent year on year and the lowest quarterly volume since the pandemic. Spending on gold jewellery, however, rose 14 per cent year on year to $40bn. Read with a jeweller's eye, that is the whole story of this market in one line: fewer pieces changing hands, each one worth considerably more. (World Gold Council)
Central banks buy 289 tonnes as total demand holds flat
Total second quarter gold demand was 1,269 tonnes, essentially unchanged on the year, with central bank purchases of 289 tonnes up 62 per cent year on year offsetting exchange traded fund outflows of 45 tonnes. The average LBMA price for the quarter was $4,506.29 an ounce, 8 per cent below the first quarter but 37 per cent above the same quarter of 2025. (World Gold Council)
Mine supply keeps climbing, and the miners are answering the price
Second quarter mine production reached 965.6 tonnes, up 2 per cent year on year, following a first quarter of 885 tonnes that was an all time high for a first quarter in records going back to 2000. High prices are drawing incremental output from both large scale and artisanal producers, though supply of this kind responds in years rather than weeks. (World Gold Council)
Jackson Hole comes into view
Attention now turns to the Federal Reserve's annual symposium at Jackson Hole from 27 to 29 August, where Kevin Warsh gives his first keynote as chairman on the Friday morning. He has signalled a speech that steps back from near term debates, and has said the Fed is not constrained by market prices. For gold, the interest is in what it implies for the path of policy into the year end. (Investing.com, FXStreet)
Sources: Trading Economics, Bloomberg, World Gold Council, Texas Precious Metals, Investing.com, FXStreet. Compiled Sunday 16 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.