Gold Surges Past $4,700 Amid Dollar Weakness and Fed Bets
Gold has reached its highest level in over three months after a weaker US dollar and bets on Federal Reserve policy drove prices up to nearly $4,700 an ounce. The price of spot gold rose by about 0.8% to $4,641.27 per ounce in Asian trading, with US futures advancing to around $4,697.70.
The Treasury's decision to expand buybacks of longer-dated securities has contributed to the dollar's weakness, which is expected to continue as markets wait for this week's inflation data and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium. The move has revived concerns about debt sustainability and the purchasing power of the dollar.
Gold has gained over 5% in value last week due to a combination of factors, including a weaker dollar and concerns around Treasury intervention and US fiscal policy. Marc Chandler, managing director of Bannockburn Global Forex, sees gold's move above $4,600 as strengthening its technical position.