Gold Holds Steady Near $4,650 as Investors Await PCE Data

Gold prices have stabilized near $4,650 per ounce as investors await crucial inflation data from the US. The metal touched its highest level since mid-May on August 24 at $4,635 before pulling back slightly.

The recent rally in gold has been driven by a softer dollar, expanded US Treasury bond buyback operations, and safe-haven demand, which has pushed prices up around 7% over the past five trading days. The Personal Consumption Expenditures price index report due August 26 is expected to have a significant impact on market sentiment.

The Federal Reserve's preferred inflation gauge has shown signs of slowing down, with the July Consumer Price Index coming in at 3.4% year-over-year and core inflation at 2.5%. Poland's gold reserves have also increased, reaching 640.2 metric tons by the end of July 2026.

The US Treasury's bond buyback operations are injecting liquidity into the market, which can weaken the dollar and make gold cheaper for international buyers. Federal Reserve Chair Kevin Warsh is expected to speak at the Jackson Hole Symposium, adding to the market's anticipation and potential volatility.