Gold Surges to Three-Month High as Dollar Weakening Fuels Demand
Gold prices surged to a more than three-month high on Monday, driven by a weakened US dollar and anticipation of upcoming inflation data. Spot gold rose 1% to $4,649.08 per ounce, while U.S. gold futures increased 0.6% to $4,706.20.
The recent strength in gold is attributed to the decline of the greenback, making it more affordable for foreign investors. ActivTrades senior analyst Ricardo Evangelista noted that the consolidation of gold prices above $4,600 depends on the US dollar remaining under pressure and Treasury yields stabilizing or declining further.
Market participants are now awaiting the July Personal Consumption Expenditure price index due on Wednesday and Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole Symposium on Friday to gauge policymakers' outlook on interest rates. The CME FedWatch Tool indicates a 36% chance of a rate-hike in September, with a 64% probability of the Fed leaving rates unchanged.