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 words from the Fed chair
Gold fell more than 1 per cent on Friday, slipping towards 4,560 dollars an ounce and its weakest level in a week, after Federal Reserve chair Kevin Warsh said inflation was not meaningfully slowing and that policymakers still had work to do. The dollar climbed to a one week high on the remarks, which makes bullion priced in dollars dearer for buyers holding other currencies. (Kitco News, Yahoo Finance)
Traders swing towards a September rate rise
Market pricing for a Federal Reserve rate increase in September moved to about 56 per cent after the Warsh comments, against roughly 36 per cent before them. Higher rates raise the opportunity cost of holding metal that pays no income, which is the mechanism behind Friday's move rather than anything in the physical market. (Kitco News)
Central banks bought 288.9 tonnes in the second quarter
The World Gold Council reports net official sector purchases of 288.9 tonnes in the second quarter of 2026, a rise of 62 per cent on the same quarter last year and the strongest second quarter on record. Poland led with 51 tonnes and China added 33 tonnes, taking the People's Bank of China to 21 consecutive months of buying. First half purchases came to 345 tonnes. (World Gold Council, Mining.com)
Reserve managers say the buying is not finished
In the World Gold Council's annual survey of central bank reserve managers, 89 per cent expect global official gold holdings to rise over the next twelve months, and a record 45 per cent expect to add to their own institution's holdings. That is a statement of intent rather than a completed trade, but it is the clearest signal available on where the largest buyers think they are going. (World Gold Council)
India restocks ahead of the festive season
Indian gold import value more than doubled in July to 4.16 billion dollars from 1.97 billion in June, with estimated volumes rising to between 40 and 45 tonnes from around 20 tonnes, according to the World Gold Council's India market update. Jewellers are building inventory ahead of Dhanteras and Diwali, and domestic prices stood near 151,744 rupees per 10 grams in mid August. (World Gold Council, The Tribune)
Mine supply grinds higher, but only just
Global miners produced 3,672 tonnes in 2025, up about 1 per cent year on year and the highest in the data series, with a mild further increase expected in 2026 as two major operations restart. The individual results tell the usual story of thin margins for error: Egypt's Sukari mine reported 232,000 ounces in the first half and remains on track for its 500,000 ounce target, while Alamos Gold flagged lower output after two seismic events and a three day power cut caused by storm damage. (World Gold Council, Egypt Oil and Gas, The Northern Miner)
Sources: Kitco News, World Gold Council, Mining.com, Yahoo Finance, The Tribune, Egypt Oil and Gas, The Northern Miner. Compiled Sunday 30 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.