Spot gold extends losses, falls nearly 2% to $4,509/oz amid late-summer volatility

Gold just had another rough session. Spot prices dropped nearly 2% to $4,508.99 per ounce on August 28, marking one of the sharper single-day declines in a stretch of late-summer volatility that has traders reassessing their positioning. The sell-off extends a pattern that has defined gold markets for weeks now, with prices oscillating between $4,500 and $4,600. For a metal that was trading above $5,000 earlier this year, the current range represents a meaningful correction, even if gold’s year-over-year gains still look impressive by almost any standard. What’s driving the pullback There’s no single smoking gun behind the decline. Instead, a confluence of factors has been chipping away at gold’s momentum since it pulled back from highs earlier in 2026. A stronger US dollar sits near the top of that list. Gold is priced in dollars globally, so when the greenback firms up, the metal effectively becomes 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. Inflationary pressures from energy ...