Gold Holds Steady as Investors Pin Hopes on US Inflation Data

The price of gold has remained relatively stable on August 26 after reaching its highest level since mid-May the previous day. Investors are eagerly awaiting key US inflation data, which could significantly impact interest rates and precious metals momentum.

As mentioned by Reuters, as of 01:50 GMT, spot gold stood at $4,652.39 per ounce, while U.S. gold futures rose 0.3% to $4,709.20 per ounce. The price surge gained momentum after a significant rise last week due to the US Treasury's bond buyback announcement.

The market is closely watching the release of the July personal consumption expenditures price index at 12:30 GMT on the upcoming key event for investors. A speech by Federal Reserve Chair Kevin Warsh, scheduled for Friday as part of the central bank symposium in Jackson Hole, is also highly anticipated.

According to Wael Makarem, Head of Financial Markets Strategy at Exness, the most favorable scenario for gold would be weaker-than-expected inflation data combined with a dovish or measured stance from Warsh. This would reinforce expectations of lower real yields and reduce the opportunity cost of holding a non-yielding asset.