Gold Reaches $4,716 Per Ounce Amid Dollar Weakness and Inflation Concerns

Gold prices have surged to their highest level in over three months, reaching $4,716.41 per ounce for December deliveries. This comes as investors seek protection against a weaker dollar ahead of Federal Reserve Chair Kevin Warsh's first Jackson Hole keynote speech and fresh inflation data later this week.

Saxo Bank commodity strategist Ole Hansen noted that spot gold's move back above its 200-day moving average is attracting fresh technical and momentum-driven demand. The Treasury's recent announcement to at least double its buybacks of longer-dated securities has continued to reverberate across markets, raising the possibility of further dollar weakness.

The odds of a rate hike during the Federal Open Market Committee meeting in September stand at 38.4%, according to data from the CME FedWatch tool. Investors will be closely watching Warsh's keynote and July CPI data for clearer guidance on how the central bank will tackle inflation.