Gold Edges Higher Near Three-Month Peak on Weaker Dollar
Gold prices edged higher on Tuesday, remaining close to their highest levels in more than three months. The precious metal's rise is attributed to a weaker US dollar and the US Treasury Department's bond buyback plans.
Spot gold rose 0.2% to $4,706.60 per ounce as of 19:30 GMT, staying near its highest level since mid-May. UOB expects gold to be on track for its 'strongest monthly gain since September 1999,' after rising more than 15% since the beginning of the month.
A weaker dollar makes gold more attractive to holders of other currencies, while lower Treasury yields reduce the opportunity cost of holding the non-yielding precious metal. The US Dollar Index has fallen 0.8% since the beginning of the month.
Investors are also turning their attention to an upcoming speech by Federal Reserve Chair Kevin Warsh ahead of the Jackson Hole symposium later this week, looking for fresh signals on the interest rate outlook.