Gold Soars to Three-Month High as Dollar Falls Ahead of Inflation Data

Gold prices have surged to their highest level in over three months, reaching $4,641.27 per ounce on Monday (Aug 24). The gain of 0.8% was largely driven by a softer US dollar.

The US dollar's decline has made gold more affordable for holders of other currencies, with the metal stepping back into 'bid mode' as a result.

Analysts are now looking to key US inflation data and a speech by US Federal Reserve chair Kevin Warsh at the Jackson Hole symposium on Friday for fresh clues on the US interest rate outlook.

'Traders will be listening closely for any shift in tone on the policy path and how it sits with recent bond market developments,' said Tim Waterer, chief market analyst at KCM Trade. 'A balanced or cautious tone that leaves room for flexibility would likely keep the door open for gold to extend its gains.'