Gold steadies, heads for third straight weekly gain

August 21, 2026 - 02:25

Gold prices stayed flat on Friday, but the metal is still set to close out a third straight week of gains. The steady performance comes as the U.S. dollar softened and the Treasury Department signaled it wants to keep longer-term borrowing costs in check.

Traders have been watching the bond market closely. The Treasury's recent moves to manage the curve, particularly by capping yields on longer-dated notes, have made non-yielding assets like gold more attractive. A weaker greenback also helps, since it makes bullion cheaper for buyers using other currencies.

The weekly climb has been modest but consistent. Investors are balancing hopes for a softer Federal Reserve stance against lingering inflation concerns. While some analysts see room for a pullback if economic data surprises to the upside, the current tone remains supportive for the precious metal.

Physical demand from central banks and retail buyers in Asia has also provided a floor under prices. At the same time, exchange-traded fund outflows have slowed, suggesting that the selling pressure from Western investors is easing.

For now, the market appears to be in a wait-and-see mode. The next big test will come with the release of U.S. jobs data and the Fed's preferred inflation gauge later this month. Until then, gold looks comfortable holding its recent gains, even if the upside momentum has stalled for the day.