Gold Soars to 7-Month High as Fed Rate Hike Fears Ease

The gold market saw a significant turnaround in August, marking its fastest monthly gain in seven months. The precious metal rose by 10% to reach $4,449 per ounce, while silver surged by 15.4% to hit $66.5.

This shift in fortunes comes after a tumultuous few months for gold, which had been battered by rising oil prices and strengthened expectations of interest rate hikes from the Federal Reserve. However, as inflation concerns eased and labor market developments weakened the case for higher rates, demand for gold began to pick up again.

The US Treasury's decision to increase its long-term bond buyback operations also contributed to the resurgence in gold prices. Additionally, a relative decrease in geopolitical risks helped boost investor appetite for precious metals.