Gold Surges Above $4,600 Per Ounce as Dollar Weakness Continues

Gold prices have continued their upward momentum, breaking an important threshold and showing no signs of slowing down. As of 9:19 am Vietnam time, spot gold prices increased by 0.73% to $4,649.24 per ounce, while December gold futures contracts on the US market rose by 8.96 USD or 0.19%. This strong increase follows a similar trend seen in August 24.

The upward momentum is being supported by a combination of fundamental and technical factors. According to Mr. Jim Wyckoff, a market analyst at American Gold Exchange, this favorable environment is expected to continue as long as there are no technical reversal signals. The US Treasury Department's move to buy back long-term government bonds has contributed to the weakening USD, making gold more attractive to investors holding other currencies.

The cash flow into gold ETFs also shows a noteworthy return of investors, with gold-backed ETFs attracting capital equivalent to 46.7 tons of gold last week, worth about $6.4 billion. This is the largest net gold inflow in 10 months and highlights the growing demand for gold.

However, gold's upward momentum still faces certain risks, particularly if US bond yields rise again or inflation data tightens expectations for monetary policy. The market will closely watch the July Personal Consumption Price Index (PCE) release and Fed Chairman Kevin Warsh's speech at the Jackson Hole conference.