Gold Taps Record Highs as Markets Eye US PCE Data and Warsh's Jackson Hole Speech

Gold prices continued their upward trend on Monday as investors looked ahead to crucial US inflation data and a speech by Federal Reserve Governor Kevin Warsh at the Jackson Hole Economic Symposium.

The rally is driven in part by growing expectations that the Federal Reserve may lower interest rates as soon as September, reducing the opportunity cost of holding non-yielding assets like gold and making it more attractive to investors.

Spot gold was up around 0.8% on the day, hovering near record highs set earlier in August, with a year-to-date gain of over 20% supported by robust central bank buying, geopolitical uncertainty, and a softer US dollar.

The upcoming PCE price index report will be closely watched for any signs that inflation is easing, which could reinforce the case for a rate cut and further support gold prices. A hotter number might temper expectations of a rate cut and trigger a pullback in bullion prices.