Gold futures on the New York Mercantile Exchange posted gains on Wednesday, with the most actively traded December 2026 contract rising $29.4 to settle at $4,710.0 per ounce, a 0.63% increase.
The rally was fueled by renewed safe-haven buying after U.S. Treasury Secretary Bessent announced a fresh round of sanctions targeting Iran's economic isolation during a press conference on Wednesday afternoon, intensifying pressure on Tehran. This development helped gold regain its upward momentum.
Market participants are also awaiting remarks from Federal Reserve Chair Kevin Warsh, scheduled for August 28 at the Jackson Hole symposium, which could provide further direction for the precious metal.
According to a statement from the U.S. Treasury's Office of Foreign Assets Control, the expanded sanctions now cover five additional sectors, including aviation, digital assets, gold, shipping, and technology. Bessent described the measures as an aggressive push against Iran's global financial connections, aiming to sever every economic lifeline of the Iranian government until it is completely isolated. President Trump is reportedly contacting multiple world leaders regarding specific demands for halting dealings with Iran.
The escalating situation in the Middle East has enhanced gold's appeal as a safe-haven asset. Data from the World Gold Council (WGC) showed net inflows of $6.381 billion into gold ETFs last week, underscoring robust investor interest.
Meanwhile, U.S. Treasury yields edged lower, with the 10-year note slipping 3.5 basis points to 4.700%, providing additional support for gold prices. After months of consolidation, the gold market is once again demonstrating bullish momentum.
Analysts attribute this fresh uptrend to a revival of the currency debasement trade, following the Treasury Department's announcement of plans to purchase long-term bonds to reduce borrowing costs. However, persistent inflation and the prospect of further Fed rate hikes suggest that gold's path upward may not be entirely smooth.
In other metals, silver futures for September delivery declined 61.4 cents to settle at $69.735 per ounce, a drop of 0.87%.