Gold Prices Surge 10% in August Amid Rate Hike Expectations Easing

Gold prices surged in August, marking their fastest monthly gain in seven months. The precious metal rose 10% last month amid a decline in expectations that the Federal Reserve would hike interest rates and easing of geopolitical risks.

The US Treasury's expanded long-term bond buyback operation contributed to gold's increase. This move led to weaker inflation data, decreased employment numbers, and reduced expectations for rate hikes by the Fed.

Additionally, central bank purchases of gold also played a role in its rise. The People's Bank of China purchased 19 metric tons of gold last month, with similar large-scale buys resembling those of major institutional investors or central banks anticipated to continue in September.