Gold prices stuck near a three-month high in Asian trade on Tuesday, August 26, with spot gold at $4,646.08 per ounce, just below the previous session's peak, after a weaker US dollar and renewed concerns over US fiscal conditions revived demand for the metal as a hedge against currency debasement, according to The Times of India live updates. The move extends a rally that had already produced a third consecutive weekly gain: in the week to Friday, August 21, spot gold was little changed at $4,514.23 per ounce as of 0031 GMT, up 3.2% for the week, after reaching its highest level since early June in the previous session, while US gold futures steadied at $4,571.20, the same report showed.
Precious Metals Snapshot
The table below combines the two The Times of India live-blog updates, from August 21 and August 26.
| Asset | Aug 21 price | Aug 26 price | Comment |
|---|---|---|---|
| Spot gold | $4,514.23/oz | $4,646.08/oz | Weekly gain of 3.2% through Aug 21 |
| US gold futures | $4,571.20 | — | Steady |
| Spot silver | $68.03/oz | $67.88–$69.09/oz | Flat Aug 21; fell 1.04% on Aug 26 |
| Platinum | $1,846.29 | $1,869.22 | +1.1% Aug 21; +0.6% Aug 26 |
| Palladium | $1,333.11 | $1,345.30 | Steady Aug 21; +1.4% Aug 26 |
All three precious metals besides gold were headed for weekly gains in the August 21 report, The Times of India said.
Treasury Buybacks and the Federal Reserve
The dollar's softness is the immediate driver. A weaker US dollar "was supporting gold by making dollar-priced commodities cheaper for holders of other currencies," The Times of India reported. Market participants are also assessing changes in US Treasury debt management. Treasury Secretary Scott Bessent said on Thursday that he may further increase government repurchases of Treasury securities. The Treasury Department had announced on Wednesday that it would double the size of buybacks of longer-dated securities over the next quarter to at least $4 billion per operation.
The Treasury plans have pulled Federal Reserve policy back into focus. Two Fed officials expressed caution when asked how changes in Treasury debt management could affect the central bank's policy choices, The Times of India reported. According to the CME FedWatch Tool, markets are pricing in a 64% chance the Fed keeps rates unchanged in September and a 36% chance of a hike. US labour-market data showed that the number of Americans filing claims for unemployment benefits slipped last week, a report that suggested the labour market remained stable despite a surprise drop in employment in July. Higher interest rates can weigh on gold's appeal because the metal does not provide a yield.
Bessent said the United States would impose "the toughest sanctions in history" on Iran, a move he suggested would lessen the need for new major military operations.
India Bullion Market Diverges
Domestic Indian pricing moved in the opposite direction from international spot quotes in late August. In Delhi, gold rose by Rs 2,700 to Rs 1,67,100 per 10 grams on Tuesday, August 26, marking a fourth consecutive session of gains, with 99.9% purity metal closing at Rs 1,64,400 per 10 grams on Monday, The Times of India reported. Silver, however, retreated: Delhi silver declined by Rs 3,500 to Rs 2,50,000 per kg as traders booked profits after a three-session rally, according to the All India Sarafa Association. Internationally, silver fell 1.04% to $67.88 per ounce on August 26, its second consecutive session of losses.
Earlier, the August 21 update recorded Bengaluru's Thursday closing bullion rates at Rs 15,000 per gram for 22-karat gold and Rs 16,400 per gram for 24-karat gold, according to PTI, with silver quoted at Rs 2,53,300 per kg.
Investor Positioning: Gold Stocks and the PCE Watch
Equity market signals corroborated the bullish gold tone. Gold stocks in Australia rose as much as 2.3% to a five-month high on Tuesday, even as the broader S&P/ASX 200 pared early gains after hotter-than-expected inflation data raised concerns over a potential rate hike, The Times of India reported. Evolution Mining gained 0.3%, while the broader mining sub-index hit a record high, supported by strong copper prices.
Traders are now focused on US inflation data scheduled for release this week. The August 26 update said gold had held steady after hitting a more-than-three-month high in the previous session, as investors awaited the US Personal Consumption Expenditures (PCE) inflation reading. A softer reading could support precious metals by reinforcing expectations for lower real yields, the report said. On the August 21 session, investors were tracking economic data due from the UK, France, Germany, the European Union and the US, including retail sales figures and flash manufacturing, services and composite PMI readings. These data points, together with the Treasury buyback schedule and Fed policy signals, will determine whether gold's third consecutive weekly gain extends into a fourth.
