Dollar Weakness Drives Gold to Three-Month High
Gold prices have risen to their highest level in over three months as the US dollar continues its downward trend. Spot gold reached $4,641.27 an ounce on Monday, marking a 0.8% increase from the previous day's close.
The dollar's weakness is being attributed to the Treasury's decision to expand buybacks of longer-dated securities, which has raised concerns about debt sustainability and the purchasing power of the dollar.
Investors are now looking towards this week's inflation data and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium for guidance on monetary policy.
While some analysts see a potential target price of $4,680 if gold can sustain its momentum above $4,600, others caution that the rapid advance may be overstretched.