Gold: “Please fasten your seat belts”

Oil prices and bond yields are on a roller-coaster ride, while stocks are hitting new record highs. Michael Blumenroth explains why gold has also recently seen a significant rebound.

August 6, 2026. FRANKFURT (Xetra-Gold). This summer, which seems to be breaking record temperatures, is also the season for folk festivals and fairs. Although I, for example, really enjoy flying—whether in a hot-air balloon or an airplane—and have already been through countless flights with turbulence, not even ten horses could convince me to venture onto a roller coaster. Maybe that’s not something you absolutely have to do anymore as you get older.

Oil Prices and Bond Yields on a Roller Coaster Ride

The financial markets, on the other hand, seem to have been quite comfortable with being caught in a roller-coaster ride over the past few weeks. While Brent oil prices had recently risen from around $70 per barrel to $102 per barrel, they fell back below the $80 per barrel mark again this week. This was driven by hopes for a prompt reopening of the Strait of Hormuz—following signals of de-escalation from the parties involved. This, in turn, led to a slight easing of inflation expectations, which had recently risen noticeably again. Consequently, yields on long-term government bonds—which had risen sharply last week, particularly in the wake of the U.S. Federal Reserve meeting—also eased somewhat.

Stock Markets Hit Record Highs After July Correction

Stock markets experienced mirror-image, roller-coaster-like movements. After a noticeable correction in July, these losses have now been more than offset by hopes for a sustained de-escalation in the Middle East and by some unexpectedly strong quarterly results from many companies in the U.S. and Europe. Both the DAX and the majority of leading U.S. indices reached record highs. A sign of a decidedly risk-on sentiment: nothing but sunshine, just like the view out the window here in Frankfurt.

Gold Prices Benefit from Risk-On Sentiment

Somewhat counterintuitive—after all, gold is often purchased as a “safe haven”—gold prices also benefited from this risk-on environment. This was due in particular to slightly lower yields and the moderately weaker U.S. dollar. Since I have the honor of joining Manuel Koch again on the Frankfurt Stock Exchange on Thursday morning—the link to the podcast should be available on this website shortly—I’m writing these lines, as an exception, already on Wednesday afternoon.

Gold Price Trends: Bouncing Back from Rock Bottom

This also gives me the opportunity to report that gold prices have rebounded from rock bottom this week—they haven’t yet reached the same heights on this roller coaster ride as the major stock indices, but they have at least climbed a small hill. While gold prices were still trading at around 4,045 US-Dollar per ounce on Thursday morning of last week, they have since moved relatively sluggishly (the heat?) between 4,020 US-Dollar and 4,120 US-Dollar through this Wednesday morning—that is, within a trading range of 100 US-Dollar. Gold prices apparently did not want to be left out of the positive sentiment on the financial markets. As of 4:30 p.m., when this article was written, the price had reached a daily high of 4,240 US-Dollar—an increase of about 3.9 percent from the previous day’s closing price.

Xetra Gold Price Rises Sharply

The Xetra Gold® price thus rose significantly, particularly today. During regular trading hours, it jumped from 113.50 Euro per gram last Wednesday afternoon—a weekly low of 112.15 Euro—to about 117.90 Euro as of this minute.

Outlook: Focus on the Jobs Report and the Situation in the Middle East

On Friday, analysts and market observers are likely to once again focus intensely on the U.S. jobs report for July. Overall, however, the markets remain captivated by the news—which has recently taken a more positive tone—regarding a potential de-escalation in the Middle East.

I wish all readers fans that work properly and plenty of cold drinks.