• Anticipating lower US interest rates and safe-haven demand helped gold rise beyond $3600, close to record levels, and on pace for a weekly gain of more than 3%.

• Further deterioration was indicated by the most recent ADP report, which showed that private payrolls increased by just 54,000 in August, significantly less than expected, and that jobless claims hit their highest level since June. To solidify their bets on a short-term Fed move, investors are now awaiting the August NFP data, which is out later today.

• There is a virtually 100% chance that markets will price in a 25 basis point drop on September 17. Since lower interest rates lessen the opportunity cost of keeping non-yielding assets, traders are now betting on up to three cuts this year, which would help gold.

• Concerns about the Fed’s independence have been exacerbated by President Trump’s actions, and the demand for safe-haven assets is being increased by geopolitical tensions, economic uncertainty, and global trade uncertainties.

Technical Triggers 

• Gold seems to continue its run-up towards its record high levels again. Next target $3650 (~Rs 108,000) and $3700 (~Rs 110,000).
• Silver continues its upward trajectory for the next target of $42 (~Rs 125,500) and $43 (~Rs130,000).

Support and Resistance

• A record climb towards $3640 (~Rs 107,200) has caused gold to see some profitbooking, halting its longest winning run since March but keeping it close to record highs due to rising demand for safe haven assets and anticipation of US monetary easing.
• A potential Supreme Court battle was set in motion on Wednesday when the Trump administration challenged a court decision that invalidated the majority of his international tariffs. Gold and silver continued to be supported by these additional uncertainties, which also included anxieties about debt and the independence of the Federal Reserve.
• In the meantime, July statistics revealed a greater-than-anticipated decline in US job postings, indicating a worse labour market and supporting speculation of a possible rate decrease in September. For more hints on economic momentum and Fed policy, investors are now waiting for Friday’s nonfarm payrolls report, ADP employment data, and US unemployment claims.

Technical Triggers 

• Gold and Silver prices have achieved all short-term targets; prices are expected to continue their profit-booking and consolidation after a sharp run-up.

Support and Resistance

The World Gold Council, Linklaters and Hilltop Walk Consulting have unveiled a pioneering vision to transform the global gold market through the introduction of Wholesale Digital Gold—a transformative concept that will enhance how gold is owned, traded, and utilised.

In today’s wholesale market, gold trades are settled in two main structures. The first is allocated gold which involves direct ownership of specific physical bars but is

operationally complex; and the second is unallocated gold, which has higher liquidity and lower costs, but may expose investors to the credit risk of the institution where the account is held.

Following on from the FMSB’s Precious Metals Spotlight Reviews1, and in consultation with key industry participants; we propose a new way to settle gold, bridging the gap between these two structures. Pooled Gold Interests combines the best of both worlds by providing physical ownership, just like allocated gold, but with new benefits to investors including:

• Broader and simplified use of gold, including as collateral.
• Ownership of an interest in a pool of vaulted gold bars – even in small, fractional amounts.
• Easy and secure transfer of gold interests between parties.

Mike Oswin, Global Head of Market Structure and Innovation, World Gold Council commented: “Wholesale Digital Gold is a vision to transform the way gold is owned and traded. The UK Government’s recent publication on Financial Markets Digital Strategy highlights the importance of digitalizing wholesale markets to drive efficiency, resilience, and innovation—an ambition that closely aligns with our own.”

“As the world’s leading gold trading hub, with the Loco London market clearing an average of 20 million ounces daily, the UK is well positioned to lead the way in improving the way gold is traded and cleared to the benefit of all market participants. Introducing a robust legal structure and innovative technology for gold ownership and settlement, will only reinforce London’s role in the global gold market.”

The Wholesale Digital Gold ecosystem is designed to be technology-neutral, supporting initiatives like World Gold Council and LBMA’s Gold Bar Integrity programme. It also optimises for regulatory compliance and capital efficiency.

To support this innovation, a new legal framework has been developed by Linklaters. This framework underpins the issuance and transfer of interests in a pool of vaulted gold bars, ensuring beneficial ownership of the physical gold held in custody. Core participants in the Wholesale Digital Gold ecosystem would co-own the underlying pooled gold and issue digital fractional ownership interests in the gold, maintaining transparency and trust.

Richard Hay, Partner and UK Head of Fintech at Linklaters, commented:

“We are proud to support the World Gold Council and the broader industry in articulating their exciting vision for a digital gold market through the development of a new legal structure to support that vision. This structure provides legal certainty and supports operational flexibility essential for innovation in precious metals trading. By enabling secure, transparent and efficient digital ownership of fractional interest in gold, we are helping to unlock new opportunities for market participants and reinforcing London’s leadership as the world’s preeminent gold trading hub.”

The World Gold Council invites market participants, regulators, and technology providers to engage with this initiative and help shape the future of the gold market.

World Gold Council

We are a membership organisation that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting standards for a perpetual and sustainable gold market.