- The best-performing precious metal this past week was silver, up 10.28%. Silver outperformed the complex due to its higher beta sensitivity to gold prices, supported by an unexpected decline in U.S. payroll data that pushed Treasury yields lower and reduced expectations for additional rate hikes.
- China and stablecoin issuer Tether are increasing their gold accumulation as global mine production reached a record 1,867 tonnes in the first half of the year, although production costs continue to rise. According to Canaccord, Tether purchased 450,000 ounces of gold in Q2 2026, more than double the 210,000 ounces acquired in Q1 2026. This increased its total gold holdings to 4.7 million ounces, valued at $18.8 billion and representing 10% of its reserves.
- Annualized dividends and buybacks announced by senior gold producers have totaled $11.2 billion so far in 2026, well above last year's record of $8.6 billion. According to Canaccord, senior gold producers have returned more capital during 2024–2026 than during the previous 13 years combined.
Weaknesses
- The worst-performing precious metal this past week was platinum, although it still gained 5.96%. Platinum and palladium have outperformed gold and silver over the past month, while silver and gold emerged as the catch-up trades this past week.
- Coeur Mining's Q2 financial results missed expectations, with EPS of $0.12 falling short of BMO's estimate of $0.32, primarily due to lower production. Output was affected by lower grades resulting from mine sequencing, and the company lowered production guidance for both New Afton and Rainy River.
- According to CIBC, Torex Gold reported adjusted quarterly EPS of $0.91, below the consensus estimate of $1.01. All-in sustaining costs (AISC) came in at $2,459 per ounce, above the consensus estimate of $2,355 per ounce. Q2 EPS was also impacted by lower sales of 92,351 gold-equivalent ounces, compared with previously reported production of 96,297 gold-equivalent ounces.
Opportunities
- Gold is showing clear signs of a bottoming reversal, extending a sharp rebound after holding key technical support below $4,000 per ounce. The recovery has been driven by aggressive dip-buying following weak U.S. labor market data and steady institutional demand, highlighted by China's central bank accumulating gold for 21 consecutive months.
- Aya Gold & Silver has expanded its Moroccan exploration footprint by 35.4% to more than 991 square kilometers through the acquisition of a 259-square-kilometer strategic land package spanning three new projects for $1.1 million. The district-scale expansion broadens the company's asset base around the Zgounder mine, providing early-stage exposure to precious, base, and critical metals to support its long-term exploration pipeline.
- UBS sees improving medium-term prospects for platinum group metals (PGMs), citing constrained primary supply, industry restructuring, and stronger-than-expected demand from hybrid vehicles, which could sustain demand for automotive catalysts longer than many expect.
Threats
- Bloomberg warns that gold's rally may be at risk after its rapid ascent, with key U.S. inflation data due next week that could alter the market's trajectory. Weaker-than-expected nonfarm payroll data drove gold sharply higher this past week. However, an upside surprise in next week's CPI report—particularly in core inflation—could reverse this week's decline in Treasury yields and weigh on gold. In addition, any escalation in geopolitical conflicts could push yields higher, creating a further headwind for the metal.
- Zijin Gold International Co.'s decision to abandon its proposed $3.9 billion acquisition of Canada's Allied Gold Corp. in favor of a $295 million equity investment is the clearest indication yet that Chinese officials may be changing their approach. While there was no formal rejection, Chinese regulators did not approve the transaction before the deadline. As a result, gold mining companies may have one fewer potential buyer willing to pay a control premium.
- Ghana has attracted increased attention in the gold sector as the country's mining industry has grown in value, prompting changes to mining rules and regulations. However, according to the IMF, as reported by Bloomberg, Ghana's central bank incurred losses of 22 billion cedis ($1.9 billion) in 2025 under its domestic gold purchase program due to service fees, assay charges, and trading margins.
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