Gold Surges to Mid-May Highs as Buying Momentum Builds
Gold prices have reached their highest level since mid-May due to strong buying momentum. As of August 25, spot gold rose 0.6% to $4,676.75 per ounce, while US gold futures increased by 0.8% to $4,734.50.
The rally is attributed to the U.S. Treasury's recent buyback announcement, which has boosted investor confidence in the precious metal. Additionally, market participants are awaiting key inflation data and a speech by Federal Reserve Chair Kevin Warsh for clues on interest rates.
Citi raised its zero-to-three-month gold price target to $4,800 an ounce, citing potential easing of tensions around the Strait of Hormuz, lower real interest rates, and a less hawkish Fed. The investment bank maintained its six-to-12-month target at $5,000 per ounce.
Meanwhile, Ghana's artisanal gold marketing agency GoldBod has faced financial difficulties, with some operators forced to halt purchases or borrow due to delayed payments from the agency.