Gold Prices Leap 10% in August Amid Shift in Market Sentiment

Gold prices have seen their best monthly gain since January, rising by 10% in August to near $4,000. This impressive growth comes amidst a shift in market sentiment following the release of three key economic indicators: jobs, consumer price index (CPI), and producer price index (PPI) data. These figures all came in softer than expected, causing a significant drop in the probability of an interest rate hike by the Federal Reserve.

The odds of a September rate hike fell from 50% to 31%, which is good news for gold investors. Central banks have also been active buyers of gold, purchasing a record 288.9 tonnes in the second quarter despite falling prices.