Gold Prices Hit Highest Level Since Mid-May Amid Ongoing Economic Uncertainty

Gold prices rose to their highest level since mid-May on Tuesday, as investors continued to buy in after last week's announcement from the U.S. Treasury Department that it would double the size of its liquidity support buyback operations for longer-dated notes and bonds.

The spot gold price reached $4,676.75 per ounce, a 0.6% increase, while U.S. gold futures rose 0.8% to $4,734.50. This comes after Citi raised its zero-to-three-month gold price target to $4,800 an ounce and kept its six-to-12-month target at $5,000.

The rally has been driven by a combination of factors, including the Treasury's announcement, which helped to reduce long-term interest rates. Additionally, investors are awaiting key economic data releases, including the U.S. Personal Consumption Expenditures report due on Wednesday and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole conference this week.

Warsh's speech has taken on added weight as traders and analysts look for guidance on interest rates and reassurance of his independence from the Trump administration. The market is also watching the Strait of Hormuz, where tensions have eased somewhat in recent days, although some analysts remain cautious due to ongoing geopolitical uncertainty.