Gold Hits New Highs as August Rally Adds Nearly $5 Trillion in Value

Gold is having its best month since January. The metal touched $4,645.74 an ounce on August 24, up roughly 15% for the month, while silver has surged even further — up around 19% — with the two metals together adding close to $5 trillion in combined market value in a matter of weeks.

A pause in Federal Reserve interest rate hikes has weakened the dollar, making gold — which is priced in dollars and pays no interest itself — more attractive relative to cash and bonds. That shift accelerated after cooling U.S. inflation data changed expectations for where rates go next.

Central banks have been buying heavily, too: a net 288.9 tonnes of gold in the second quarter of 2026 alone, a 62% jump from the same period last year and the strongest second quarter on record, with China among the largest buyers. Analysts also point to an unexpected move by the U.S. Treasury to double its long-term bond buyback program to $4 billion per session, adding to demand for alternative stores of value.

Ongoing geopolitical tension — including the war in Ukraine and instability in the Middle East — has added to gold's appeal as a hedge investors turn to when they're uneasy about everything else. Several market forecasters now see room for gold to keep climbing, with at least one call for a further 20% rise, though such forecasts are inherently uncertain and not a guarantee of future performance.

The price levels, monthly gains, and central bank purchase figures in this story are drawn from market-data providers and multiple financial outlets. Forward-looking price targets are analyst opinion, not fact, and are labeled as such — markets can and do reverse.