Weakening Dollar Drives Gold Prices to Three-Week High
Gold prices rose for the third consecutive week, reaching $4,563.7 per ounce on August 21. This marks a 3.6% increase from the previous week and the highest level since June.
The main driver behind this surge is the weakening US dollar. As the greenback depreciates, gold becomes more attractive to investors holding other currencies.
Another factor contributing to the rise in gold prices is the US Treasury Department's plan to buy back government bonds. This move could affect bond yields and expectations for monetary policy in the coming months.
The Federal Reserve remains cautious about changes in public debt management and its impact on monetary policy. Investors are closely monitoring Fed officials' next signals, particularly regarding interest rate adjustments.