Gold Reclaims USD $4,600oz as Investors Question America's Fiscal Outlook

Gold and silver extended their bullish momentum during Friday’s US trading session with prices pushing above USD $4,600 per troy ounce (oz) for the first time since May 2026. Gains were supported by a weaker U.S. dollar and growing concerns over U.S. fiscal sustainability.  

Price Performance (Since 21 August 2026): 

• Gold: +1.6%, currently trading at USD $4,624oz and AUD $6,433oz, +4.3% week-on-week.   

• Silver: +1.6%, currently trading at USD $69oz and AUD $96oz, +4.8% week-on-week. 

• Platinum: +1.6%, currently trading at USD $1,880oz and AUD $2,622oz, +6% week to date.  

Key Drivers: 

• The U.S. Treasury's decision to expand long-dated bond buybacks helped push the U.S. dollar lower (A tailwind for gold given its inverse correlation to the USD, pictured below) and reignited concerns over the long-term outlook for U.S. government debt, which recently surpassed USD $40 trillion (US Debt to GDP of 122%). 

• ETF investment demand continues to strengthen, with global gold ETFs attracting 46.1 tonnes of net inflows by 14 August (WGC), already marking the largest monthly inflow since January 2026. With gold prices rising a further 5.2% since then, flows are likely to increase further by month-end, highlighting renewed participation from Western investors. 

Gold in USD vs U.S. Dollar Index (DXY) – 1999 to 2026 

Luke Tyler
Senior Analyst, ABC Bullion

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