Gold Price Surges to Near $4,500 Per Ounce on Bond Market Support

The world gold price surged to new heights on August 20, nearing the critical $4,500 per ounce mark. The precious metal's value increased by 2.86% to reach $4,490.18 per ounce.

This sharp rise in gold prices follows recent developments in the US bond market and the USD. The US Treasury Department has increased its scale of long-term government bond repurchases to support market liquidity, which is expected to improve financial conditions.

However, gold's outlook remains uncertain due to ongoing inflationary pressures and monetary policy considerations. Some Fed officials are still open to supporting interest rate hikes if inflation does not continue to improve.