Gold Prices Soar to Three-Month High Amid Weaker Dollar and Upcoming Economic Indicators

Gold prices have surged to their highest level in over three months on Monday, driven by a weaker US dollar and growing interest ahead of key economic indicators. Spot gold climbed 0.7%, reaching $4,635.39 an ounce, its peak since May 14.

The rally was also influenced by technical buying as investors reacted to the US Treasury's recent buyback announcement, according to market analyst Jim Wyckoff. He noted that stabilizing bond yields and gold's move above its 200-day moving average have added to the positive momentum.

Gold-backed exchange-traded funds (ETFs) reported significant inflows last week, totaling 46.7 metric tons valued at approximately $6.4 billion, marking the highest weekly demand in the past ten months.

The market is now awaiting key upcoming economic indicators, particularly the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditure (PCE) price index, scheduled for release on Wednesday, and Chair Warsh's inaugural address at the Jackson Hole Symposium on Friday.