Five Forces Push Gold and Silver Higher as July CPI Print and China's Buying Habits Converge
The price of gold and silver surged on Wednesday, August 12, 2026, driven by five converging factors. The July Consumer Price Index (CPI) print was a key contributor, as it landed exactly in line with consensus, removing the risk of an unexpected inflation surprise that could have prompted the Federal Reserve to raise interest rates in September.
China's central bank continued its 21-month streak of buying gold, adding approximately 20 tonnes to its reserves in July 2026. This marks the longest consecutive month of purchases on record, with total holdings now exceeding 76 million ounces.
Gold has entered technically overbought territory for the first time since March 10, according to Bespoke Investment Group, but this does not necessarily signal a short-term correction. The January move showed how structural demand can propel gold prices even when technical indicators suggest it's due for a pullback.