Gold Prices Surge Above $4,600 as Yields and Oil Prices Fall
Gold prices continued to rise on August 26, maintaining their upward momentum despite investors waiting for new signals from the Fed. The precious metal has increased by more than 7% in a week, supported by falling US yields and oil prices.
The spot gold price as of 9:39 am Vietnam time was $4,663.39 per ounce, while December gold futures contracts rose to $4,721.21 per ounce. This upward momentum has extended the 5-session streak of gold increases.
Gold prices are often seen as benefiting from falling US government bond yields due to its limited supply and lack of dependence on government solvency. The recent fall in US Treasury Department long-term government bond repurchases has supported this trend, with yields decreasing by about 5-7 basis points across the entire yield curve.
Investors are eagerly awaiting Fed Chairman Kevin Warsh's speech at the Jackson Hole seminar on August 28, which may provide more signals about the direction of US monetary policy in the coming time. The precious metals market has seen spot silver increase by 1.49%, platinum by 1.07%, and palladium by 1.31%.