Gold Extends Rally Amid Dollar Weakness and Geopolitical Tensions
Gold prices continue to rise, reaching three-month highs above $4,650 as investors remain bullish amid US dollar-negative factors.
The metal is benefiting from reduced haven demand for the USD, with markets casting doubts on the US economic outlook following a surge in Treasury bond yields and resulting commitment by the US Treasury to buy back more long bonds.
Additional downward pressure on the greenback comes from the latest tariff tensions between the US and Canada, which has led Canadian Prime Minister Mark Carney to announce retaliatory tariffs beginning September 8.
Receding bets on a US Federal Reserve interest rate hike in September, following dismal US economic data, also contribute to the buck's decline and Gold's uptrend.
The yellow metal is seeing a revival as a safe-haven asset despite ongoing tensions between the US and Iran, with Fed Chair Kevin Warsh set to address investors at the Jackson Hole symposium this week.