Gold retreats on firmer US dollar and treasury yields

25 August 2026

Market comment on behalf of Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A

Gold prices retreated slightly on a firmer US dollar and Treasury yields, while markets could remain cautious ahead of new inflation and job market data as well as the Federal Reserve’s Jackson Hole Symposium. However, the metal remained close to a multi-month high after four consecutive weeks of gains. The move higher was supported by the US Treasury’s decision to double its long-dated bond buybacks and by fiscal-sustainability concerns with federal debt above USD 40 trillion.

At the same time, the metal could continue to react to changing monetary policy expectations. September Fed hike odds held near 42%, with a 58% chance of a hold. However, a hike is still expected later this year, which could weigh on the metal. Upcoming PCE data will affect interest rate expectations, drive Treasury yields and gold. Markets are also turning their attention to the Jackson Hole Symposium, where any hints from policymakers could move markets at a time when forward guidance remains limited.

 

Zaid Barem / ymm