Gold Drops 1.5% – Are Precious Metals Heading Lower Again?

Today Markets UAESeptember 1, 2026

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The rise in oil prices is putting pressure on the precious metals market today, with gold down nearly 1.5% and silver falling close to 2.5%. The move comes alongside higher bond yields and growing expectations for faster interest-rate hikes in the U.S. Volatility may increase this afternoon when the U.S. JOLTS and ISM Manufacturing data are released at 3 PM GMT. Weaker data could support precious metals, while stronger readings and a high manufacturing prices index could theoretically favor sellers.

Gold’s weakness began after weekend comments from Kevin Warsh revived concerns about the future path of U.S. interest rates.
Despite short-term pressure from higher yields and expectations for a more restrictive Fed, long-term structural demand for gold remains very strong.
According to the latest World Gold Council data, central banks bought a net 289 tonnes of gold in Q2, more than five times the 57 tonnes purchased in Q1 and the highest figure ever recorded for a second quarter.
A WGC survey shows that 45% of central banks plan to continue increasing their gold reserves over the next 12 months.
Purchases are broadly distributed geographically, suggesting that demand is not being driven by just one or two major buyers.
The People’s Bank of China increased its gold reserves by 20 tonnes in July to a record 2,377.5 tonnes. In total, China has added 60 tonnes so far in 2026.
Poland has been even more aggressive, increasing its reserves by 82 tonnes this year to 632 tonnes.
Even during price corrections, gold continues to benefit from very strong institutional demand from central banks.

GOLD chart (D1 interval)

Gold is defending its 200-day exponential moving average today, a key technical level separating the broader bearish and bullish trends. A close below $4,350 per ounce could point to more prolonged weakness in precious metals.