Gold Hits Three-Month High Ahead of Inflation Data and Jackson Hole

Gold prices surged to their highest levels in over three months on Monday, buoyed by technical buyers entering the market and the US Treasury's bond buyback plan. The weaker dollar also contributed to gold's gains as it made dollar-denominated bullion cheaper for overseas buyers.

The spot price of gold rose 0.7% to $4,635.39 an ounce, its highest level since May 14. US gold futures for December delivery gained 0.4% to settle at $4,697.80 an ounce.

Last week, gold moved above its 200-day moving average, reinforcing the bullish momentum in prices. Gold-backed exchange-traded funds also attracted significant inflows of 46.7 metric tons worth $6.4 billion, marking the strongest weekly pace of demand in 10 months according to the World Gold Council.

Markets are now focusing on upcoming events including the release of US inflation data and the Jackson Hole symposium where Fed Chair Kevin Warsh will deliver a speech on Friday.