Gold hits three-month high on inflation worries
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Spot gold hit almost $4,700 an ounce, its highest since mid-May, on US inflation worries.
Investors hedge against dollar debasement and Fed credibility, with $5,000 next in focus.
Background
Gold prices surged to a three-month high as traders worried about US inflation and bond market jitters. The rally was triggered by the US Treasury's surprise decision to double its liquidity-support buybacks for longer-dated bonds, which fueled dollar debasement fears. Investors are now focused on upcoming US inflation data and a speech by Federal Reserve Chair Kevin Warsh for clues on interest rates.
How it unfolded
- Aug 21, 2026Gold surged past $4,600 per ounce, touching its highest level in three months, after the US Treasury announced it would double bond buybacks.
- Aug 24, 2026Spot gold gained 0.8% to $4,639.49 per ounce, after hitting $4,680.70, its highest since May 14.
- Aug 25, 2026Spot gold touched almost $4,700 an ounce earlier, trading at $4,649, as investors awaited US inflation data and Fed Chair's speech.
Who’s saying what
- Analysts
- Ipek Ozkardeskaya of Swissquote says gold is a hedge against unclear US fiscal plans, inflation, and a potential rout in risk assets, with the question being whether it can sustainably return above $5,000.
- Bulls
- Peter Schiff argues gold's rally shows the Fed has lost all credibility on its inflation target, and investors are choosing their preferred hedge.
- Caution
- Giovanni Staunovo of UBS warns that more expensive energy could add to inflation pressures and keep central banks cautious about lowering rates, potentially supporting bond yields and weighing on gold.
Still unverified
Some ships may switch off transponders in the Strait of Hormuz, so actual transit numbers could be higher than reported.