The morning briefing from Chapman Gold: what moved the gold market and why it matters. Prices in the banner above are live.
Gold touches a three month high, then steps back
Spot gold rose 0.6% on Tuesday to $4,677.19 an ounce, its highest level since mid May, before easing on Wednesday morning as some holders took profit and the dollar recovered a little ground (CNBC, Fortune). The move up was driven by a softer dollar and by the US Treasury's bond buyback plans keeping a lid on yields, which lowers the opportunity cost of holding a metal that pays no interest. A pause after a run of that size is ordinary market behaviour rather than a change of direction.
The month, not the day, is the real story
Gold has gained more than 15% so far in August, and UOB has said the metal is on track for its strongest monthly gain since September 1999 (CNBC). Traders are now waiting on US inflation data and a Federal Reserve speech for the next signal on the rate path. For anyone holding scrap or old jewellery, a month like this changes the arithmetic of what a piece is worth by weight.
India restocks ahead of the festive season
The World Gold Council's latest India Gold Market Update reports import value more than doubling in July to $4.16bn from $1.97bn in June, with estimated volumes rising to 40 to 45 tonnes from around 20 tonnes. Manufacturers reported higher order flows and jewellers are building inventory ahead of Dhanteras and Diwali. India remains the swing factor in physical jewellery demand, and a restocking cycle there tends to firm the floor under the market.
ETF money is still coming from the East
Global gold ETF inflows reached $11bn through July, equal to a 39 tonne increase in holdings, with Asian listed funds the largest contributor and Europe second (World Gold Council). North America remained in net outflow over the period. COMEX net long positions fell 4.4% over the month to 542 tonnes, which suggests the rally has been led by physical and Eastern demand rather than by Western speculative positioning.
Mine supply hits a record, and so do costs
Global gold mine production rose 2% year on year to 966 tonnes in the second quarter, an all time high for a June quarter, taking first half output to 1,867 tonnes, some 3% above the same period last year (MINING.COM). Industry all in sustaining costs have risen sharply at the same time, reported at $1,785 an ounce in the first quarter, up 16% year on year. Higher prices feed straight back into the cost line through royalties, so record output does not translate into a flood of cheap metal.
Central banks expected to keep buying
Goldman Sachs expects central banks to average around 60 tonnes of gold a month through 2026, supported by continued reserve diversification amid geopolitical uncertainty (Kitco). The pattern since 2022 has been reserve managers converting Treasury holdings into bars held in Basel approved vaults. Official sector buying is slow, price insensitive money, and it is the part of demand least likely to reverse on a bad week.
Sources: CNBC, Bloomberg, Fortune, Kitco, MINING.COM, FXStreet, the World Gold Council. Compiled 26 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.