Gold Soars to Three-Month High as Dollar Weakens
Gold prices surged to their highest level in over three months on Monday, reaching $4,643.63 per ounce, as a weaker US dollar boosted demand. The spot gold price gained 0.9% and US gold futures rose 0.4% to $4,699.10.
The subdued dollar teetered near multi-month lows due to the US Treasury's promise to buy back more long bonds, making greenback-priced bullion more affordable for holders of other currencies.
Market analysts point to higher yields and underlying economic strains as key factors driving gold prices up. Tim Waterer, chief market analyst at KCM Trade, noted that gold is taking cues primarily from the softer dollar and focusing on what higher yields may be signaling about economic policy uncertainty.
The July Personal Consumption Expenditures price index data and Fed Chair Kevin Warsh's speech at the Jackson Hole symposium this week will be closely watched for fresh clues on the US interest rate outlook. A balanced or cautious tone from Warsh could keep the door open for gold to extend its gains, according to Waterer.