UBS Garber The Bullion Report Gold Finds New Buyers As USD Weakness Drives Fresh Interest 24 Aug 2026

UBS Garber - The Bullion Report Gold Finds New Buyers As USD Weakness Drives Fresh Interest 24 Aug 2026 Jonathan Garber · UBS · Precious Metals / Trading Mon 24 Aug 2026

A weekly note on all things Precious Metals. Contributors: Andrew Matthews, Christine Gilfillan, Dhiraj Singh, Laurie Kirby, Michael Crimmins, Vincent Nickel, Joe Barra, Jason Perl, Ahmed Elmogi, Matt Slater, Hannah Kench.

Gold: Improving sentiment, strong ETF inflows, recovering financing demand, and USD weakness continue to support a constructive outlook.

Silver: Borrowing activity has picked up modestly, with producer-related flows and stronger curve demand providing support.

Platinum: Intermittent lending activity and producer hedging interest suggest improving market engagement despite mixed fundamentals.

Views From Trading: Constructive on gold as better buyers emerge and support forms.

DeMark Technicals: Gold is bullish, Silver is bullish, Platinum is bullish.

Electronic Precious Metals Trading Analysis: Higher gold and silver volumes and tighter spreads point to improved liquidity and stronger electronic participation.

The outlook for gold has become increasingly constructive, supported by strong futures positioning, continued ETF inflows, US fiscal and debt concerns, dollar weakness, persistent inflation risks, and reduced expectations for near-term policy easing. Investor sentiment has shifted meaningfully over the past two weeks, with growing interest from hedge funds and other clients seeking to increase exposure following the latest rally. While many investors were largely disengaged only a few weeks ago, the recent price action appears to have captured broader market attention.

Despite the bullish backdrop, investor participation has not fully matched the strength of the rally. Gold's advance has been driven primarily through futures markets rather than OTC channels, with Exchange-for- Physical (EFP) premiums remaining elevated and futures positioning accounting for much of the market's strength. This divergence helps explain why prices have moved sharply higher while client engagement and OTC flows remain relatively uneven.

ETF demand remains one of the strongest supportive factors for the market. Buying has remained consistent throughout the rally, with substantial additional gold accumulated through ETF vehicles. Unlike some other areas of the market, ETF inflows are aligned with the price action, reinforcing the view that the move is being supported by genuine investment demand rather than solely speculative futures activity.

Lending and financing markets have also shown signs of improvement. In Asia, Singapore traded at a premium to OTC markets, Asian clients borrowed loco London gold, and borrowing demand increased across a broad range of maturities, extending from one month to as far as eighteen months. These developments are notable given the pressure on lending yields over recent months and suggest that demand for financing is beginning to return.

Curve dynamics have shifted across both gold and silver. Front-end rates have softened while longer-dated maturities have strengthened, a pattern visible across multiple metals. Although the underlying drivers remain uncertain, producer-related activity may be contributing to stronger demand further out the curve.

Activity across the white metals has been more mixed. Silver experienced pockets of borrowing demand, including activity from Australian banking counterparties that may be linked to producer-related flows. Platinum saw intermittent lending activity, with speculative participants seeking rates and indications of demand further out the curve, potentially associated with producer hedging. Palladium activity remained largely unchanged, with no significant developments reported.

Options markets have also become more supportive of the bullish narrative. Skew has shifted in favor of calls, making upside exposure more expensive relative to puts and signaling stronger demand for bullish positioning. In addition, realized volatility has recently exceeded implied volatility, creating potential opportunities for volatility buyers and highlighting the speed at which headline-driven moves can develop in…