$4,697 Gold Prices Soar as Investors Await US Core Inflation Data

Gold prices are on the rise, reaching fresh 15-week highs of $4,697 in Asian trades. This comes as investors await the US core Personal Consumption Expenditures (PCE) Price Index data for July.

The US dollar is subdued, making gold a more attractive investment option. Analysts at Commerzbank note that this move is consistent with previous episodes of trade friction, where gold prices have risen significantly due to concerns over the dollar's reputation as a reserve currency and safe haven.

Strong physical demand in India and the US Treasury's surprise doubling of its bond-buyback plan are also contributing to the rise in gold prices. However, it remains to be seen if gold will sustain its momentum following the release of the PCE data later this week.