Gold prices strengthened on Monday, 17 August 2026, as investors assessed weaker US economic data, changing interest-rate expectations and renewed threats to energy supplies through the Strait of Hormuz.
At the time of writing, gold futures rose 0.18% to US$4,445.3 an ounce. Silver advanced 0.76% to US$65.625 an ounce, while the US Dollar Index slipped 0.1% to around 99.536.
Gold’s recovery followed softer US economic indicators. Retail sales fell 0.6% month-on-month in July—the first decline in nine months—while US consumer sentiment dropped by approximately 8% in August after two consecutive months of improvement. These results reduced concerns about an imminent Federal Reserve rate increase and supported demand for non-yielding assets such as gold.
Gold Futures, Silver Futures and DXY Index (Source: TradingView)
Attention will now turn to the minutes from the Federal Reserve’s 28–29 July meeting, scheduled for release on Wednesday, 19 August. Investors will examine the minutes for evidence of how policymakers are balancing slowing consumer activity against inflation remaining above the central bank’s target.
Geopolitical developments remain another important influence. Shipping activity through the Strait of Hormuz slowed sharply following attacks on commercial vessels. Only five commodity vessels reportedly passed through the waterway on Saturday, while none were recorded on Sunday, compared with 31 during the previous weekend. The strait has historically handled around one-fifth of global oil and liquefied natural gas shipments.
For Australian investors, the interaction between gold prices and the Australian dollar will be particularly important. A softer Australian dollar can increase the local-currency gold price and potentially improve revenue conditions for ASX-listed gold producers. However, higher oil prices may also raise diesel, freight and processing costs, partly offsetting the benefit.
Gold’s near-term direction is therefore likely to depend on the tone of the Fed minutes, movements in US Treasury yields and the US dollar, and whether tensions around the Strait of Hormuz intensify or ease.
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