Commodities
Gold Prices Plummet Amid Inflation Fears, but Retail Demand Keeps Buying Case Alive
Gold prices plummeted 1.4% to $4,599.57/oz on August 26, 2026, following a July US inflation rate exceeding forecasts at 3.7% year over year.
The decline was the sharpest in a week, but gold rebounded 0.2% on August 27 as markets awaited Fed Chair Kevin Warsh's Jackson Hole remarks.
Despite this pullback, retail bar and coin demand remains strong, reaching a 12-year high of 1,200 metric tons in 2025, accounting for 25% of global demand.
Currency-debasement concerns are renewed as the Treasury expands buybacks of older long-dated bonds to limit borrowing costs, supporting gold's price floor.
However, a 72% probability of a December rate hike versus 36% for September leaves gold sensitive to Fed Chair Warsh's tone and subsequent inflation data.