Gold Holds Firm as Oil Approaches USD $90 and Treasury Yields Reach 19-Year Highs
18 August 2026
Precious metals were broadly steady, seeing small gains over the past 24 hours as investors weighed escalating geopolitical risks against a sharp rise in long dated bond yields. Gold continues to trade upwards near recent highs around the key USD $4,400oz price point, supported by safe-haven demand.
Daily Performance
Gold: +0.7%, currently trading at USD $4,416oz and AUD $6,216oz.
Silver: +1.2%, outperforming gold at approximately USD $65.8oz and AUD $92.5oz.
Platinum: +1.8%, currently trading at USD $1,742oz and AUD $2,452oz.
Key Drivers
A significant development overnight was the surge in oil prices, with Brent crude rising 2.7%, pushing toward USD $90/bbl after President Trump threatened military action against Oman should it interfere with negotiations involving Iran and the Strait of Hormuz (AFR). Markets remain concerned that disruptions to Middle Eastern oil flows could keep inflation elevated for longer, though the latest US inflation data has helped ease investor concerns for now.
At the same time, the U.S. 30Y Treasury yield climbed to 5.31%, its highest level since June 2007, reflecting investor concerns over persistent inflation, expanding fiscal deficits and heavy bond issuance (CNBC). The U.S. 10Y Treasury yield also gained 4 basis points to 4.72%. Rising long-term yields would normally weigh on non-yielding assets such as gold; however, safe-haven demand has so far offset much of that pressure.
Precious metal markets will remain focused on any developments in US-Iran negotiations with respect to the Strait of Hormuz in the coming days. As well as the FOMC minutes this Thursday for clues on the Fed's rate path.
Luke Tyler
Senior Analyst, ABC Bullion
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