Gold, Silver and Precious Metals Daily — 2026-09-10

Top developments

China’s Central Bank Extends Record Buying Streak

The People's Bank of China (PBOC) increased its gold reserves by 650,000 ounces (approximately 20.22 tonnes) in August, marking the 22nd consecutive month of accumulation. Total reserves rose to 76.73 million ounces (approx. 2,386.57 tonnes), with the August addition slightly larger than July's 640,000 ounces. This sustained buying supports the structural demand thesis for gold, counteracting short-term volatility from US rate expectations.

Gold Volatility Amid Middle East Tensions and Fed Uncertainty

Spot gold prices fluctuated between $4,395 and $4,435 this week, reacting to mixed signals from the US Federal Reserve and escalating Middle East tensions. On Wednesday, September 9, gold futures initially dropped to $4,399 following reports of US strikes on Iranian oil tankers, but rebounded to $4,435.60 as investors weighed inflation risks against safe-haven demand. Market participants are currently pricing in a high probability of a Fed rate hike, which typically pressures non-yielding assets like gold.

Silver Outperforms Gold; Platinum Faces Supply Deficit

Silver edged higher, rising about 0.4% to near $67 per ounce on Tuesday, September 8, while gold slipped. Meanwhile, platinum has been the best-performing precious metal recently, up 7.75% in a single week due to a widening structural supply deficit and low above-ground inventories. However, the World Platinum Investment Council noted that supplies could shift to a surplus in 2026 if investor interest wanes and Chinese jewelry demand remains weak.

Global Gold Jewelry Demand Contracts Amid High Prices

High gold prices are suppressing physical demand in key markets. In the first half of 2026, gold jewelry consumption in India and China—the world's two largest markets—dropped by 17% and 30% year-on-year, respectively. Consumers are increasingly shifting from ornamental jewelry to investment-grade gold bars and coins, where premiums are lower. This structural shift impacts the traditional seasonal demand patterns usually seen ahead of Indian festivals.

Local view

China: Local media highlights the PBOC's consistent strategy of diversifying away from the dollar, noting that the August purchase was slightly larger than July's, signaling continued confidence in gold as a reserve asset despite global rate volatility. The "Shanghai premium" remains a key indicator for local traders watching for divergence between domestic SGE prices and international spot rates.

India: Bullion markets in Delhi saw gold fall for a third consecutive day, dropping ₹100 per 10 grams to ₹1,58,000, while silver surged by ₹2,300 per kg to ₹2,43,400. Local jewelers report that high import duties and elevated international prices are dampening wedding season demand, pushing buyers toward silver and lower-carat gold.

Context & numbers

• Spot Gold: Traded between ~$4,395 and ~$4,435/oz this week.
• Spot Silver: Hovering near $67/oz.
• China Gold Reserves: 2,386.57 tonnes (as of end-August 2026).
• Global Central Bank Buying: YTD purchases reported at approximately 130 tonnes, with China (20t) and Poland (8t) leading recent monthly additions.
• Gold/Silver Ratio: Swung between 61.7 and 70.4 in the last 12 weeks, currently around 66.3.

On the radar

• US CPI Data: Investors are closely watching upcoming US inflation data for clues on the Federal Reserve's next policy move, with rate hike odds currently high.
• Platinum Surplus Forecast: Watch for revisions to the World Platinum Investment Council's 2026 surplus forecast, which could impact PGM prices if demand assumptions change.
• Indian Import Duty: Monitor any potential changes to India's 15% import duty plus 3% GST, which significantly affects the Shanghai-to-Mumbai arbitrage window.