Gold Hits Three-Month High on Softer Inflation Data

Gold prices have reached a three-month high of $4,650 after softer US inflation data tempered expectations for a Federal Reserve rate hike. The commodity has been supported by a decline in US Treasury yields and a weaker dollar.

The US Department of the Treasury announced that it will at least double its buyback operations for long-dated government debt from September, with buybacks potentially exceeding $4 billion per issue.

While markets now lean towards a hold at the 15-16 September FOMC meeting, pricing still implies over a 70% chance of at least one Fed rate rise by year-end.