21/08/2026 Daily Reports
- Spot gold climbed 0.5% to $4,540/oz, taking weekly gains to 3.6%.
- Gold reached its highest level since early June in the previous session.
- The weaker U.S. dollar is supporting gold and other precious metals.
- U.S. Treasury plans to double longer-dated Treasury buybacks to at least $4 billion per operation next quarter.
- Treasury Secretary Scott Bessent signaled that buybacks could be increased even further.
- Markets are pricing a 64% probability of no Fed rate change and a 36% probability of a hike next month.
- Lower yields and a softer dollar remain supportive for gold, while a more hawkish Fed could limit the upside.
- The U.S. says it will impose the “toughest sanctions in history” on Iran, adding geopolitical support for gold.
What’s Next?
- The gold story is no longer just about safe-haven demand. A weaker dollar, movements in Treasury yields, Treasury buybacks, Fed expectations, and geopolitical risks are all supporting gold at the same time. If the decline in U.S. Treasury yields proves to be sustainable, the $4,600 level could come back into focus. However, a more hawkish Fed and a renewed rise in Treasury yields remain the biggest risks to the rally.
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Nasdaq. US equities closed lower on Thursday, 20 August: the Nasdaq Composite fell 1% to 29200, the S&P 500 lost 0.87%, and the Dow Jones Industrial Average shed 1.32, marking the Dow’s worst day since 29 July. Treasury yields resumed rising despite the Treasury Department’s decision to expand debt buybacks, with the 30-year yield climbing six basis points to close at 5.25% and the 10-year at 4.70%. Treasury Secretary Scott Bessent told CNBC the repurchase operation could exceed the $4 billion announced. Walmart shares fell over 9% after reporting strong earnings but slowing US sales growth, with management citing consumer trade-offs due to high gasoline prices. Early Friday, S&P 500 futures were flat and Nasdaq-100 futures 0.2% higher, leaving the Nasdaq down 2.5% for the week. Attention now turns to Fed Chair Kevin Warsh’s Jackson Hole address.
DAX. The DAX 40 closed about 0.4% lower at 25,966 on Thursday, its lowest since 31 July and a fourth consecutive decline, as higher oil prices linked to the Iran conflict and rising bond yields weighed. Adidas (-2.7%) and Puma (-1.8%) tracked Walmart’s losses, while MTU Aero Engines, Scout24, Rheinmetall, Airbus and Deutsche Telekom also fell. Brenntag dropped 1.2% after Bank of America resumed coverage with an Underperform rating and a €55 price target, while Qiagen rose 3.1% and Symrise 1.9%.
Nikkei. Japan’s July consumer price index excluding fresh food rose 1.8% year on year, accelerating from 1.6% in June, the fastest reading since January and in line with the median estimate. The measure excluding fresh food and energy advanced 1.9%, as did headline CPI. July exports beat estimates, marking a fifth straight month of gains on robust chip shipments. The Nikkei 225 fell 0.39% while the Topix was flat.
