Spot gold fell nearly 2% to $4,508.99 per ounce on August 28, extending weeks of price swings between $4,500 and $4,600. A stronger dollar and resilient US labor data are driving the pullback, though the metal still holds a year-over-year gain of roughly 33% to 36%.
Gold dropped nearly 2% to $4,508.99 per ounce on August 28, one of its sharper single-day declines in a stretch of late-summer volatility. The metal has spent weeks oscillating between $4,500 and $4,600, a meaningful correction after trading above $5,000 earlier this year.
What is driving the pullback
A stronger US dollar sits near the top of the list. Gold is priced in dollars globally, so a firmer greenback makes the metal more expensive for international buyers.
Resilient US labor data has also played a role. Stronger-than-expected employment numbers reduce the urgency for the Federal Reserve to ease monetary policy, which in turn supports higher real interest rates. Meanwhile, inflation pressures from energy markets have added another wrinkle, contributing to dollar strength in a way that helps the currency more than the metal.
A correction with context
Even at $4,509, gold is still sitting on a year-over-year gain of roughly 33% to 36%. In February, the metal dropped about 2.8% in a single session to land around $4,939 per ounce, and similar single-session declines of 2% to 9% have occurred throughout 2025 and 2026 after substantial rallies.
Central bank buying has been one of the structural pillars keeping gold's floor intact. Countries around the world have been diversifying their reserves away from dollar-denominated assets, creating a steady source of physical demand that cushions selloffs.
What to watch from here
The $4,500 level is shaping up as a psychological and technical line in the sand. A sustained break below it could trigger additional selling from algorithmic and technical traders who watch round numbers closely.
Fed policy signals remain the single most important variable for gold's near-term direction. The drop from above $5,000 to $4,509 represents a correction of roughly 10% or more from peak levels, a zone that has historically marked where buyers start to step back in.
Source: Crypto Briefing
Trading involves risk.
Risk Disclaimer
