Losing Momentum: Gold Price Struggles to Break US$4,700, Silver Slumps
Jakarta, CNBC Indonesia - Gold prices were nearly flat after briefly touching their highest level in more than three months.
The rally in gold began to lose momentum as prices approached the psychologically important level of US$4,700 per troy ounce, while investors awaited US inflation data this week.
According to Refinitiv, gold closed at US$4,656.59 per troy ounce on Tuesday (25/8/2026), up a very slight 0.11%.
The gain extended gold’s rally to three consecutive days with a cumulative increase of 3.07%.
Yesterday’s closing price remained the highest in three months.
Today, Wednesday (26/8/2026) at 06:39 WIB, gold was at US$4,660.12 per troy ounce, up 0.08%.
Bart Melek, Global Head of Commodity Strategy at TD Securities, explained that gold is struggling to break through the US$4,700 level.
“This is just a loss of momentum. Gold is moving towards a strong resistance level around US$4,700,” Bart Melek told Reuters.
Gold had previously reached US$4,696.18 per troy ounce, driven by investors watching the US Treasury Department’s decision to double its long-term bond buyback programme.
The policy also pressured the US dollar to its lowest level in more than three months last week.
Now, market attention is focused on the US Personal Consumption Expenditures (PCE) inflation data for July, released today, and Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday.
The PCE data is a key focus because the Fed uses it in setting its 2% inflation target. However, softer producer and consumer inflation data this month have reduced the likelihood of a US interest rate hike in the near term.
According to the CME FedWatch Tool, market participants currently see only a 38% probability of a US interest rate hike in September.
High interest rates tend to dampen gold’s appeal because the asset does not offer interest yield.
In China, net gold imports through Hong Kong in July rose about 11% month-on-month, driven by increased investment demand.
On the geopolitical front, Iran has vowed to resist the expansion of US sanctions aimed at isolating its economy. Tehran said it is confident its major trading partners will reject Washington’s pressure and said the US is still trying to revive negotiations.