Gold Prices Hold Above $4,400 as Weakened USD Boosts Demand

Gold prices have maintained above $4,400 per ounce as the US dollar hit its lowest level in months. As of 9:25 am Vietnam time on August 18, spot gold prices increased by 0.63% to $4,404.47 per ounce, while spot gold contracts fell 0.29% to $4,460.75 per ounce.

The upward momentum in gold prices is attributed to a weakening US dollar, which has fallen to its lowest level since May following a series of weaker-than-expected US economic data. The greenback's decline made gold cheaper for buyers holding other currencies.

Investor demand and central bank purchases, particularly from China, have also contributed to the recovery in gold prices above the $4,000 per ounce support level. However, the risk of monetary policy tightening remains a factor putting pressure on gold.

The Federal Reserve's upcoming minutes from its July policy meeting, scheduled for release on Wednesday, and Fed Chairman Kevin Warsh's statements at the Jackson Hole conference later this month are closely watched by investors seeking signals about interest rate decisions.