Gold Logs Strongest August Since 1979 as Sticky US Inflation Clouds Rally — Jackson Hole in Spotlight
Key Takeaways
- Gold’s 11% August surge is the biggest in 47 years, outpacing every other major asset class this month.
- US PCE inflation remains stubborn at 3.3%, raising fears the Fed’s rate cycle is nowhere near done.
- All eyes are now on Kevin Warsh’s Jackson Hole debut — his tone could decide whether the gold rally holds or fizzles.
- This is the kind of market swing I track in my playbook for timing precious metal purchases in Singapore.
August’s Record-Breaking Run: Gold Defies Inflation Worries
Gold finished August up 11%, closing yesterday at US$4,486 per ounce — the best August performance since 1979, according to World Gold Council records. This surge leaves even the largest tech stocks in the dust and dwarfs the rebound in US Treasuries after July’s market chaos.
Here’s a quick look at August’s numbers:
| Asset | Aug 2026 Performance |
|---|---|
| Gold | +11% |
| S&P 500 | +3.2% |
| US Treasuries | +1.6% |
| Silver | +8.7% |
| Platinum | +5.0% |
The drivers? Strong central bank buying has continued — a theme we covered recently as vaults from Singapore to Zurich fill up again. The West may be selling, but Asia’s appetite for physical bullion is as sharp as ever. For Singapore buyers, this is playing out in local vault demand, with dealers reporting brisk business. I’ve seen plenty of buyers ask whether to chase or wait — my advice is always to let the data (and not just the headlines) shape your approach (Serious Data Behind Timing Gold & Silver Buys in 2026 Singapore).
Sticky PCE Inflation and Warsh’s Debut: What’s Next for Gold?
But here’s where it gets tricky. The US PCE inflation print for July came in at 3.3%, unchanged from June, according to the US Commerce Department. That’s well above target, and Wall Street is now betting on at least one more Fed hike before year-end. The last time inflation was this stubborn and gold this strong, Paul Volcker was Fed Chair. Different era, same headline risk.
The spotlight now turns to Jackson Hole. Kevin Warsh steps up for his first major speech as Fed Chair tomorrow. His policy leanings are still an open question, but his prior record suggests a pragmatic hawk — potentially rattling for gold if he signals tighter-for-longer rates. I’ll be glued to the livestream, lah.
For Singapore investors, this is a classic dilemma: momentum versus macro risk. That’s why I always suggest diversifying across gold, silver, and even platinum — whatever the Fed does next. Markets are jittery, but physical supply here remains healthy, especially with reputable dealers like BullionStar still offering quick delivery and storage.
Will this gold rally hold into September? If inflation keeps beating forecasts and Warsh goes hawkish, expect turbulence. But with physical demand surging in Asia, I wouldn’t write off another leg higher — especially after a month like this.