Gold Price Reverses Course After Hitting Three-Month High
The gold price has reversed direction after hitting a three-month high, showing signs of adjustment in trading on August 25. Spot gold prices fell by 0.2% to $4,640.39 per ounce.
This move follows a strong increase last week, and investors are now focused on the US inflation report and the first speech of US Federal Reserve Chairman Kevin Warsh at the Jackson Hole conference this week.
The upward trend in gold prices is driven by concerns related to the strength of the USD and the possibility of increasing inflationary pressure. The US Treasury Department's expansion of liquidity support activities through buying back long-term government bonds has also increased interest in safe-haven assets like gold.
The market remains interested in the US Personal Consumption Expenditures (PCE) index report, which may affect expectations about the timing and pace of the Fed's interest rate adjustment. Fed Chairman Kevin Warsh's speech at Jackson Hole is also being closely watched for signals on monetary policy management views.