Overview
- Global spot and futures gold climbed into the mid‑to‑high $4,600s per ounce in a late‑August rally that reached its strongest levels since mid‑May, with intraday highs reported above $4,730.
- The immediate trigger was the U.S. Treasury’s decision to step up buybacks of long‑dated bonds to about $4 billion per session, which helped push yields lower and weakened the dollar, prompting investors to move into gold as a store of value.
- Monday’s local markets felt the shock of the international move with Pakistan’s 24‑carat rate jumping to Rs487,136 per tola and India’s 99.9% purity price rising to Rs1,64,400 per 10 grams, sharply raising costs for consumers and jewellers.
- Structural buyers amplified the rally as central banks continued large net purchases in Q2 and gold‑backed ETFs recorded heavy inflows, removing physical metal from the market and tightening supply.
- Thursday’s U.S. PCE inflation print and Friday’s Jackson Hole speech by Fed chair Kevin Warsh are the near‑term catalysts that could reverse or extend the rally by changing rate expectations, the dollar’s path, and the market’s view of Washington’s fiscal outlook.