Gold Soars to Three-Month High Ahead of Inflation Data
Gold prices reached their highest level in over three months on Monday, fueled by investors' positioning for US inflation data and Federal Reserve Chair Kevin Warsh's speech at Jackson Hole. Spot gold rose 0.7% to $4,636.34 an ounce, while US gold futures gained 0.3% to $4,694.80.
The rally comes after a sharp increase of over 5% last week, following the announcement of a US Treasury debt buyback support plan that weighed on the dollar. A weaker greenback tends to boost gold's appeal for holders of other currencies.
Markets are now focused on the July Personal Consumption Expenditures (PCE) price index and Warsh's address at Jackson Hole, which could provide signals on the Federal Reserve's policy path. Goldman Sachs has predicted that prices could exceed its year-end forecast of $4,900 due to strong demand for bullish gold options.
Central bank buying has also contributed to the increase in demand. Poland's central bank reported an increase in its gold holdings to 20.6 million troy ounces at the end of July.