$US5,000 Gold Back in Play as State Street Sees Rebound as Critical Reset
State Street Investment Management's latest Monthly Gold Monitor shows gold prices gained nearly 10% in August, its strongest monthly increase since January. The precious metal started the month below $US4100 per ounce before reaching as high as $US4650-4700, and finishing around $US4400.
The rebound was triggered by US Treasury Secretary Scott Bessent's announcement to increase buybacks of long-dated government debt, and an 'unequivocally hawkish' speech from new US Federal Reserve chair Kevin Warsh at Jackson Hole. Despite a pullback, State Street head of gold strategy Aakash Doshi believes August established a crucial foundation for further gains.
The team sees $US4,000/oz as a firmer support level and puts $US5,000/oz back in play over the next 6 months. They also note that global gold-backed ETFs attracted $US17.1 billion during August, with European funds recording $US7.7 billion of inflows and US funds attracting $US7.5 billion.