Gold Prices Hit Three-Month High on Weaker Dollar and Economic Uncertainty
Gold prices surged to their highest level in over three months on Monday as a weaker US dollar and heightened economic uncertainty contributed to the uptick. Spot gold was up 0.9% at $4,643.63 per ounce, its highest since mid-May. US gold futures also gained 0.4% to $4,699.10.
A softer dollar made gold more affordable for holders of other currencies, with analysts attributing the price increase primarily to this factor and underlying economic strains. Tim Waterer, chief market analyst at KCM Trade, said that gold is 'looking sprightly' and has stepped back into bid mode, focusing on what higher yields may signal about policy uncertainty.
The upcoming release of July Personal Consumption Expenditures (PCE) price index data and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium this week will be closely watched for fresh clues on US interest rate outlook. Waterer noted that a balanced or cautious tone from Warsh would likely keep gold prices steady, but could also leave room for further gains.