Precious metals extended their gains on August 24, 2026, as softer US monetary policy expectations and renewed geopolitical tensions provided support for both gold and silver markets. According to FX Empire's analysis by Arslan Ali, the rally was driven by market expectations that the Federal Reserve will hold rates steady in September following weaker employment, retail sales, and inflation data that eliminated bets on another rate hike. Geopolitical factors played a significant role in the price action.
Washington is considering more stringent sanctions against Iran while uncertainty persists regarding the Strait of Hormuz situation and broader Middle East developments. These factors heightened safe-haven demand for precious metals while simultaneously creating inflation risks through potential energy cost increases, complicating the Federal Reserve's policy outlook. Gold trading was near $4,638.25, up 0.31 percent on the day.
The technical picture showed gold trading near $4,647 in a rising channel on the 4-hour chart, well above the 50-period exponential moving average at $4,453 and the 100-period EMA at $4,359. According to the technical analysis, immediate resistance levels were identified at $4,661, $4,729, $4,794, and $4,859, while support zones were established at $4,567, $4,508, and $4,448. The RSI indicator was near 73, suggesting an overbought condition, though analysts expected consolidation within the bullish zone rather than a trend reversal.
Silver showed relative weakness, declining 0.57 percent, but remained supported by fundamental factors. Silver traded near $69.02 in a rising channel on the 4-hour chart, also trading above both the 50-period EMA at $66.18 and the 100-period EMA at $64.36. Technical resistance levels for silver were positioned at $69.90, $71.03, and $72.39, with support at $68.39, $66.54, $64.19, and $62.75.
The RSI around 62 indicated good momentum without excessive overbought conditions. Structural demand drivers continued to support both metals. Central banks purchased 289 metric tons of gold, valued around $45 billion, during the second quarter, while China added 20 metric tons in July.
Global gold-backed exchange-traded funds returned to net inflows in July with 23 metric tons after experiencing two months of outflows. Silver benefited from tight physical market conditions. The Silver Institute projected a sixth consecutive worldwide deficit in 2026, with strong physical investment demand.
While solar industry consumption of silver was declining, demand from artificial intelligence data centers, electronics, automotive systems, and power grid investments showed robust structural growth. Market analysts offered a constructive but balanced outlook for precious metals. While declining Federal Reserve rate increase expectations and heightened geopolitical risks provided positive factors for gold and silver, increased inflation concerns and rising bond yields represented macro headwinds that could constrain upside potential.
Source: fxempire.com