Gold holds steady near $4,650 as investors await critical US inflation data

Gold is sitting near multi-month highs, hovering around $4,650 per ounce as traders collectively hold their breath for the Personal Consumption Expenditures price index report due August 26. The metal touched $4,635 on August 24, its highest level since mid-May, before pulling back slightly.

Gold gained roughly 7% over just five trading days heading into August 25, fueled by a softer dollar, expanded US Treasury bond buyback operations, and safe-haven demand.

The inflation picture

The PCE report, scheduled for 8:30 AM ET on August 26, is the Federal Reserve’s preferred inflation gauge. The July Consumer Price Index came in at 3.4% year-over-year, a slight decline from June’s 3.5% reading. On a month-over-month basis, prices rose just 0.1%. Core inflation, which strips out food and energy, printed at 2.5% year-over-year.

Central banks keep stacking

Poland’s gold reserves grew to 640.2 metric tons by the end of July 2026, part of a broader trend of sovereign institutions diversifying away from dollar-denominated assets.

The US Treasury’s expanded bond buyback operations have also played a role in the recent rally. These operations effectively inject liquidity into the bond market, which can weaken the dollar and make gold, priced in dollars, cheaper for international buyers.

What Warsh says matters

Federal Reserve Chair Kevin Warsh is expected to speak at the Jackson Hole Symposium. Warsh’s speech and the PCE data are landing in the same week, which creates the potential for amplified volatility in either direction.

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