Gold Pulls Back from $4,700 High Amid Inflation Data and Fed Speech
Gold prices retreated slightly on Tuesday after reaching a three-month high of $4,700. The precious metal fell by 0.2% to $4,640.39 an ounce as of 0334 GMT on August 25. The pullback came despite the gold price touching its highest level in more than three months.
The recent advance in gold has been supported by a softer US dollar and falling long-term Treasury yields after the US Treasury announced plans to expand buybacks of longer-dated securities. Investors are now looking forward to US PCE inflation data and Federal Reserve Chair Kevin Warsh's Jackson Hole speech, which could impact interest-rate expectations.
A break above $4,700-$4,712 would invalidate bearish setups and strengthen the case for continued upside in gold prices. However, a decisive break below $4,558 would signal that the current pullback is becoming a deeper correction rather than a routine retest of support levels.