Gold Prices Soar to Three-Month High Ahead of Key US Inflation Data
Gold prices surged to their highest level in over three months on Monday as investors looked ahead to US inflation data and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium. Spot gold was up 0.7% at $4,636.34 per ounce, while U.S. gold futures climbed 0.3% at $4,694.80.
The gains come after a more than 5% increase in gold prices last week due to the US Treasury's buyback support plan, which weakened the dollar and made greenback-priced bullion more affordable for holders of other currencies.
Market participants will closely monitor the July Personal Consumption Expenditures (PCE) price index and Fed Chair Warsh's speech this week for fresh clues on the US rate outlook. Goldman Sachs has forecasted a year-end gold price target of $4,900, which could be surpassed if surging demand for bullish gold options continues to amplify further gains.
On the geopolitical front, Iran's foreign minister dismissed the threat of new US sanctions as a sign of desperation and said the expected measures would fail to defeat Tehran, underpinning bullion's safe-haven appeal.