Gold Prices Break Higher on Central Bank Buying and Easing Inflation Fears

Gold prices have broken decisively higher after weeks of consolidation, reaching an intraday high of $4,363.6 per ounce yesterday, its highest level since June 17.

The rally is supported by several factors, including easing concerns over energy-driven inflation and lowered expectations for a Federal Reserve interest rate hike in September.

Central bank buying continues to provide long-term support, with central banks adding 51.1 metric tons of gold to their reserves in June.

From a technical standpoint, the latest rally reinforces the bullish outlook, pushing gold back above its 50-day moving average and strengthening the breakout above a key descending trendline on the daily chart.

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