Gold prices rise to ,594.98 as gold gains 1.79% in a day and 37.39% in a year. Here’s what is driving gold prices and what investors should watch next. 

Updated on: Aug 21, 2026, 19:53:05 IST

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Gold prices moved higher on Friday, August 21, 2026, with spot gold trading at $4,594.98 per ounce. Gold gained $80.90, or 1.79%, from the previous close of $4,514.08 per ounce.

Gold has also seen a strong rise over the past year. One year ago, gold was trading at $3,344.47 per ounce. That means gold is now 37.39% higher than it was one year ago. Gold has also gained strongly in the shorter term. One week ago, gold was at $4,352.81 per ounce, meaning prices have risen 5.56% in one week, according to USA Today.

Gold price rises

Compared with one month ago, gold has risen even more. Gold was trading at $4,091.15 per ounce one month ago. This means gold has gained 12.32% in just one month. Gold's 52-week low is $3,337.21 per ounce, while its 52-week high is $5,477.79 per ounce.

Even after Friday's rise, gold is still 16.12% below its 52-week high. At the same time, it is 37.69% above its 52-week low. This shows how much gold prices have increased over the past year.

Why gold is rising

Gold is known as a safe-haven asset. This means investors often buy gold when markets are uncertain or when they are worried about the economy or global politics, CNBC reported.

Investors also see gold as a store of value. In simple words, they believe gold can hold its value when markets are under pressure. Gold is also used as a hedge against inflation. This means some investors buy gold when they fear that rising prices could reduce the value of their money.

What drives gold prices

Gold can also perform well when stock markets and other financial assets come under pressure, making it attractive to investors looking for protection during market downturns. Several factors can influence gold prices every day. Inflation expectations, central bank policies, global economic conditions and investor demand are among the key drivers, according to USA Today.

Gold market outlook

The strength of the US dollar can also affect gold prices. Currency movements are closely watched because gold is traded internationally in US dollars. Physical demand for gold can also influence prices. This includes demand for gold from buyers and markets that use the metal in physical form. Industrial demand is another factor that can affect gold prices.

Central bank decisions are also important for gold investors because changes in monetary policy can affect inflation expectations, interest rates and demand for gold. Despite its recent gains, gold also has some disadvantages compared with traditional investments. Gold does not pay dividends, CNBC reported. Investors can gain exposure to gold in different ways, including through investments linked to the metal, although each option comes with its own risks and costs.

Overall, gold prices are much higher on Friday. Gold is up nearly 2% from the previous day and more than 37% from a year ago. The rise shows that investors are still buying gold as they watch inflation, interest rates, the global economy, currency movements and market uncertainty. These factors could affect where gold prices go next.

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