Gold Prices Reach Three-Month High as Dollar Weakens

Gold prices have reached a three-month high on August 24, driven by a weaker US dollar and investors' anticipation of upcoming US inflation data and Federal Reserve Chairman Kevin Warsh's speech.

The Straits Times reported that spot gold prices rose 0.9 percent to $4,643.63 per ounce by 0644 GMT, marking the highest level since mid-May. U.S. gold futures also gained 0.4 percent to $4,699.10 per ounce.

Tim Waterer, head of market analyst KCM Trade, attributed gold's strong start to the week primarily to a weaker dollar, which makes gold relatively cheaper for holders of other currencies. He noted that investors are also watching bond yields, as they can provide clues about economic pressures and policy uncertainty.

The market is waiting for the release of the July personal consumption expenditures price index (PCE) data, one of the inflation indicators used to determine US interest rate policy direction. Investors are also keeping a close eye on Warsh's speech at the Jackson Hole Symposium, which could offer insights into the Fed's policy stance and its implications for gold prices.