$4697 Gold Price Surges Ahead of US Core Inflation Data

Gold prices are surging towards $4,697 as investors await US core PCE inflation data for July. The US dollar is subdued, making gold more attractive to buyers ahead of the inflation report.

The metal's price has been building on last week's strong performance, rising by over 5% and reaching its highest level in three months overnight. Commerzbank analysts note that this latest move is consistent with previous episodes of trade friction, as it could further damage the US dollar's reputation as a reserve currency and safe haven.

Gold buyers are also drawing support from the US Treasury's surprise doubling of the bond-buyback plan and India's robust physical gold demand. According to the World Gold Council, gold imports rose in July, signaling stronger demand after two weak months.