August 22, 2026
Gold and silver closed significantly higher in U.S. trading on Friday. A weaker U.S. dollar, hedging against fiscal risks, and ongoing uncertainty surrounding the Strait of Hormuz bolstered demand for precious metals, even though U.S. Treasury yields remained elevated. Currently, the price of gold stood at around $4,602 per ounce, up approximately 1.86 percent. Silver traded at just under $68.90, marking a daily gain of about 1.29 percent.
Gold Price Benefits from a Weak Dollar and Fiscal Concerns
The recent movement in the gold price continues to be shaped by several opposing forces. On the one hand, U.S. economic data continued to show robust signs: The Flash Composite PMI rose to 56.0 in August, its highest level in more than four years. The increase was driven by the Services PMI at 56.8, while the manufacturing sector fell to a five-month low of 53.2.
On the other hand, the U.S. Dollar Index fell below the 99.00 mark. At the same time, fiscal concerns remained, while market expectations for a Federal Reserve interest rate hike in September continued to wane. Although the Fed minutes released this week showed that several policymakers would still be willing to raise rates if inflation persists, However, the futures markets continue to price in a pause in rate hikes in September.
Yields remained high nonetheless. The 10-year U.S. yield hovered around 4.7 percent, while the 30-year yield stood at around 5.3 percent. Investors thus looked past the U.S. Treasury’s buyback plan for long-term bonds and maintained pressure at the long end of the yield curve. For the gold price, this means a mixed environment: the weaker dollar and defensive demand are providing support, but high yields are limiting a clearer tailwind.
Technically, gold reached a daily high of $4,632.90 and surpassed the target of $4,595. In addition, the gold price remained above its 200-day moving average range. The next resistance level is $4,653.25; if it sustainably breaks above this, $4,852.91 comes into focus. On the downside, $4,453.59 is cited, followed by $4,382.83 and $4,253.93.
Silver Shows Relative Strength in the Precious Metals Sector
Silver followed gold’s movement but developed its own momentum over the course of the week. The metal briefly reached $70.14 before retreating back toward $69. Earlier in the same week, silver had already broken through the $66.55, $68.02, and $69.48 levels. The next focus is now on the range between $71.00 and $72.08.
This movement is driven by both macroeconomic and fundamental factors. The Treasury buyback plan initially triggered the reversal in the dollar and interest rates. At the same time, the narrative of industrial demand and supply shortages is supporting silver, which helped the metal outperform gold by the close of trading. Technically, the next resistance level is at $70.14, followed by $71.56 and $72.08. Support levels are seen at $66.29 and $64.20, with lower targets at $62.75.
Geopolitically, the Strait of Hormuz remains a key factor influencing oil prices, inflation expectations, and defensive demand for precious metals. Peace talks between the U.S. and Iran have stalled, the U.S. is preparing stricter sanctions against Tehran, and commercial traffic through the strait remains well below pre-war levels. Brent was trading near $93.29 per barrel, while WTI was around $84.34.
As a result, the environment for precious metals remains supportive, but not entirely clear-cut. Restricted shipping in the Gulf and a weaker dollar point to demand for safe-haven assets. At the same time, high oil prices are keeping inflation risks alive and preventing a clear decline in bond yields. The market expects the next major catalysts to come from the July PCE inflation report and Fed Chair Kevin Warsh’s remarks at Jackson Hole.
Source：https://goldinvest.de/en/gold-price-breaks-out-above-usd4-600-silver-approaches-usd70
