Gold Soars to Three-Month High as Dollar Weakens
Gold prices have surged to their highest level in over three months as the US dollar weakened. As of August 24, spot gold was up 0.8% at $4,641.27 per ounce. This gain comes after prices rose more than 5% last week.
The softer dollar has made greenback-priced bullion more affordable for holders of other currencies. Gold is now looking sprightly to start the week and is taking its cues primarily from the weaker dollar and focusing on what higher yields may be signaling about underlying economic strains and policy uncertainty, said Tim Waterer, chief market analyst at KCM Trade.
Traders are closely watching the US Treasury's promise to buy back more long bonds and key inflation data due out this week. The Personal Consumption Expenditures (PCE) price index data and Fed Chair Kevin Warsh's speech at the Jackson Hole symposium will be particularly significant in providing fresh clues on the US interest rate outlook.