Early Asian Session, Aug 5: Gold Holds Above $4,000, Silver Shows Strong Consolidation
On August 5, 2026, during the early Asian trading session, international spot gold prices continued to consolidate at high levels above the key psychological mark of $4,000/oz. As of 10:30 AM Singapore time, spot gold was trading at $4,012.50/oz, up a slight 0.15% from the previous trading day. Meanwhile, silver's performance was more eye-catching, with spot silver prices at $62.80/oz, an intraday gain of 0.8%, demonstrating strong bullish momentum ready to break out.
In the Singapore market, SGX gold futures main contract quotes rose in tandem, with the latest transaction price at $4,015.20/oz. The SGX silver futures main contract was quoted at $62.95/oz. The gold-silver ratio currently stands stable near 63.9, down from the 65 level last week, indicating that silver has recently outperformed gold.
Market Dynamics: Multiple Factors Intertwine, Precious Metals Consolidate at Highs
The current gold and silver market is in a complex environment intertwined with multiple factors. On one hand, the US non-farm payroll data released by the Labor Department last Friday fell short of expectations, with only 185,000 new jobs added in July, far below the market expectation of 220,000, reigniting market expectations for a Fed rate cut in September. According to the CME FedWatch Tool, the market-implied probability of a 25-basis-point cut in September has risen to 72%.
On the other hand, geopolitical risks continue to simmer. Middle East tensions escalated again over the weekend, with border conflicts between Israel and Lebanon intensifying, while Red Sea shipping security remains under threat. These factors collectively drive continued safe-haven capital inflows into the precious metals market. The latest data from the Monetary Authority of Singapore shows that Singapore's precious metals trading volume increased by 12% month-on-month in July, with gold trading volume growth being the most significant.
Singapore SGX Inventory Data: Silver Stocks Continue to Decline
According to the latest inventory data released by SGX, as of August 2, SGX silver inventories stood at 1,280 tonnes, a decrease of 35 tonnes or 2.7% from the previous week. This marks the sixth consecutive week of decline, with a cumulative reduction of over 180 tonnes. For gold inventories, SGX gold stocks were at 528 tonnes, roughly flat from the previous week but up 8% from the beginning of the year.
Analysts point out that the continuous decline in silver inventories reflects strong industrial and investment demand. Demand for silver from the photovoltaic industry grew 12% year-on-year in the first half of 2026, while demand for jewelry and silverware in emerging markets like India and Southeast Asia remains robust. Meanwhile, silver ETF holdings saw a net inflow of over 500 tonnes in July, indicating increased willingness from institutional investors to allocate to silver.
Technical Analysis: Gold Faces Directional Choice, Silver Breakout Signals Emerge
From a technical perspective, gold has been consolidating above the $4,000 mark for nearly three weeks since breaking through it in mid-July. The daily chart shows gold forming a narrow consolidation platform in the $3,980-$4,050 range, with the MACD indicator converging above the zero axis and the RSI indicator maintaining a neutral-to-bullish zone around 58. Analysts believe that if gold can effectively break through the $4,050 resistance level, it will open upside potential towards the $4,100-$4,120 area; downside support is watched at $3,980, and a break below could lead to a pullback to the $3,950 line.
Silver's technical formation is more positive. On the daily chart, silver prices have successfully stood above the key $62 resistance level and formed an ascending channel. The Bollinger Bands are widening, and the MACD golden cross is diverging upwards, all indicating that bullish momentum is building. Short-term resistance is focused on $63.50, and a break above will challenge the round number of $65.
Weekly Focus: ISM Services PMI and Fed Speeches
Looking ahead to this week's market, the focus will be on the following events: The US ISM Services PMI data for August 5 is due to be released, with a market expectation of 52.0; weaker-than-expected data would further strengthen rate cut expectations. Several Fed officials are scheduled to speak this week, and the market will watch for their latest comments on inflation and the interest rate path. Additionally, China's July CPI and PPI data will be released later this week; as the world's largest gold consumer, China's inflation data has a significant impact on gold prices.
Investment Strategy: Cautious on Chasing Gold at Highs, Accumulate Silver on Dips
In response to the current gold and silver trends, senior analysts recommend the following strategies: For gold, given that prices are already at the high level of $4,000, the risk of chasing the rally is high. It is advisable to wait for a pullback to near $3,980 before considering entry, with a stop-loss set below $3,950. For silver, the current technical setup is relatively positive; consider building long positions on dips near $62.50, targeting the $64.50-$65.00 area, with a stop-loss set below $61.80.
In the medium to long term, against the backdrop of continued global central bank gold purchases, elevated geopolitical risks, and the impending start of a Fed rate-cutting cycle, there is still upside potential for gold and silver prices. Investors may consider maintaining a 10%-15% allocation to precious metals in their portfolios to hedge against inflation and geopolitical risks.
