Gold and Silver Prices Rise, Is the US Dollar the Main Driver?

Gold prices rose alongside silver as a weaker US dollar and reduced expectations of interest rate hikes by the Federal Reserve renewed interest in precious metals. On August 18, 2026, spot gold gained about 0.2% to US$4,424.28 per ounce, extending its rise for a third consecutive session. Silver also rose by around 0.9%.

Key Takeaways

• Gold prices extended their gains for a third session as the US dollar hovered near a multi-month low.
• Silver moved more aggressively, having previously jumped 2.1% to around US$66.01 per ounce on August 17.
• A weaker dollar is an important catalyst, but Fed policy, economic data, geopolitics, and bond yields will continue to determine the next direction.

Why Are Gold Prices Rising?

The weakening US dollar is one of the main factors behind today’s rise in gold prices. Gold is traded in dollars, so when the US currency weakens, gold prices become relatively cheaper for investors using other currencies. This can increase demand.

On August 17, the dollar fell to its lowest level in more than two months after weak US economic data led markets to reduce expectations of a near-term interest rate hike. During that session, spot gold rose 0.9% to US$4,417.24 per ounce.

Read also: Gold Prices Fall After US Attack in Iran: Will Interest Rates Change?

Silver Prices Rise More Aggressively

Silver prices have risen more sharply than gold over the past several sessions. On August 17, 2026, spot silver jumped about 2.1% to US$66.01 per ounce before gaining again in the following session.

Silver has different characteristics because, in addition to being viewed as a precious metal, it is also widely used for industrial purposes. This can make silver prices more volatile than gold when market sentiment changes quickly.

Read also: Will Gold Prices Keep Rising? Forecasts and Key Drivers

Is the US Dollar Really the Main Driver?

The answer is yes, but it is not the only factor. The current weakness in the dollar is supporting gold and silver, but the more fundamental factor is the shift in expectations for US monetary policy.

Weaker US employment, inflation, and retail sales data have reduced concerns that the Federal Reserve will need to raise interest rates in the near term. Lower or stable interest rates tend to benefit gold because precious metals do not generate interest income.

However, rising Treasury yields still need to be monitored. Bond markets have come under pressure amid fiscal concerns and geopolitical developments, so higher yields could become a headwind for the precious-metals rally.

Read also: Investment Strategies When Gold Prices Fall: What Should You Do?

Gold Price Forecast: Can the Rally Continue?

For the gold price forecast, short-term conditions are still determined by the direction of the dollar, interest-rate expectations, and the market’s response to US economic data. Recent technical analysis shows that gold and silver have tested relatively high levels, so the risk of a short-term reversal still needs to be considered.

In other words, the rally may not move in a straight line. A renewed strengthening of the dollar or a rise in bond yields could trigger profit taking in gold and silver.

On the other hand, geopolitical tensions continue to support demand for safe-haven assets. Uncertainty surrounding the Iran-US conflict has once again become one of the factors investors are watching.

Bullish views on gold and silver also remain because some market participants believe that a long-term decline in the dollar’s value could increase the appeal of precious metals. However, extreme price projections should still be treated as opinions rather than certainties.

Read also: Is It More Profitable to Buy Lower- or Higher-Purity Gold? Here Is the Full Analysis!

What Should Investors Monitor?

Investors following the 2026 gold outlook should monitor the direction of the DXY, Fed policy, Treasury yields, inflation, labor-market data, and geopolitical developments. The combination of these factors will likely determine whether the rally holds or turns into a correction.

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Conclusion

The current rise in gold and silver is being driven significantly by the weakening US dollar and lower expectations of interest rate hikes. Gold remains above US$4,400, while silver has returned to around US$66 in the latest trading session.

Although momentum remains positive, investors need to anticipate volatility. The dollar, bond yields, the Fed, and geopolitics remain the main factors determining the next direction.

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FAQ

Why are gold prices rising today?

Gold prices are rising because of a weaker US dollar and reduced expectations of a Fed interest rate hike. Safe-haven demand is also continuing to provide support.

What is the latest gold price?

In trading on August 18, 2026, spot gold was around US$4,424 per ounce in the latest market report. Prices can change at any time.

Are silver prices also rising?

Yes. Silver rose about 2.1% to US$66.01 on August 17 and gained another roughly 0.9% in the following session.

What is the relationship between the dollar and gold prices?

A weaker dollar makes dollar-denominated gold more affordable for buyers using other currencies. This often supports demand for gold.

Will gold continue to rise in 2026?

It cannot be determined with certainty. A weaker dollar and interest-rate expectations support prices, but rising yields and a technical reversal remain risks.