Gold Hovers Near Multi-Month Highs Ahead of Critical Inflation Data
Gold has maintained its position near multi-month highs of $4,650 per ounce as investors eagerly await the release of critical US inflation data on August 26. The metal had reached a high of $4,635 on August 24, its highest level since mid-May, before experiencing a slight pullback.
The recent surge in gold prices can be attributed to several factors, including a softer dollar and expanded US Treasury bond buyback operations. These operations have effectively injected liquidity into the bond market, which has weakened the dollar and made gold cheaper for international buyers priced in dollars.
The upcoming Personal Consumption Expenditures price index report is particularly significant as it serves as the Federal Reserve's preferred inflation gauge. The July Consumer Price Index came in at 3.4% year-over-year, a slight decline from June's 3.5% reading. On a month-over-month basis, prices rose just 0.1%, while core inflation printed at 2.5% year-over-year.
Poland's gold reserves have also grown to 640.2 metric tons by the end of July 2026, part of a broader trend of sovereign institutions diversifying away from dollar-denominated assets.