Gold Soars to Highest Level Since May as Buying Momentum Continues

Gold prices rose on Tuesday, reaching their highest level since May 14 as buying momentum continued to build. The precious metal was up 0.6% at $4,676.75 per ounce, with U.S. gold futures rising 0.8% to $4,734.50.

The rally is being driven by the U.S. Treasury's recent announcement that it would double the size of liquidity support buyback operations for longer-dated notes and bonds. This has sparked a surge in gold prices, with Citi raising its zero-to-three-month price target to $4,800 an ounce.

Market analysts are closely watching the upcoming U.S. Personal Consumption Expenditures report, which is due on Wednesday, as well as Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole conference this week. The Fed's preferred inflation gauge and Warsh's guidance on interest rates will be key indicators of future market direction.

Meanwhile, Ghana's artisanal gold marketing agency GoldBod has not provided funds to its suppliers for up to three weeks, forcing some operators to halt purchases or borrow money to stay in business.