Gold Hits Three-Month High Ahead of Inflation Data and Fed Chair Speech
Gold prices rose to their highest level in over three months on Monday as investors looked ahead to US inflation data and a speech by Federal Reserve Chair Kevin Warsh. Spot gold was up 0.7% at $4,636.34 per ounce, its highest since May 15.
The price of U.S. gold futures climbed 0.3% at $4,694.80. Gold's gains were likely due in part to a weaker US dollar, which makes the metal more affordable for holders of other currencies.
Market participants will closely monitor the July Personal Consumption Expenditures (PCE) price index and Fed Chair Warsh's speech at the Jackson Hole symposium this week for fresh clues on US rate outlook. Some analysts believe that gold prices could surge past Goldman Sachs' $4,900 year-end forecast.
Official-sector demand for gold remains strong, with Poland's central bank saying its gold holdings rose to 20.6 million troy ounces as of the end of July from 20.3 million ounces as of end-June.