Gold Hits Three-Month High as Dollar Weakness Takes Hold

Gold prices have reached their highest level in over three months, driven by a weaker US dollar and the US Treasury's bond buyback plans. Spot gold fell 0.4% to $4,634.35 per ounce, but remains near its highest since mid-May. According to UOB, gold is on track for its strongest monthly gain since September 1999, with prices having already gained over 15% this month.

The US dollar's weakness has contributed to the rise in gold prices, making the metal more attractive as a safe-haven asset. Additionally, investors are keeping a close eye on upcoming inflation data, which could impact the price of gold. A dovish surprise at Jackson Hole would also be bullish for gold.

The 'debasement trade' has returned, with crypto and gold in style. However, it's essential to keep an eye on the market as prices can fluctuate rapidly.