Gold Prices Surge to Two-Month High Amid Economic Uncertainty

Gold prices rose to their highest level since mid-May on Tuesday, as investors continued to buy into the precious metal amid growing economic uncertainty. Spot gold was up 0.6% at $4,676.75 per ounce, while U.S. gold futures rose 0.8% to $4,734.50.

The rally in gold prices has been driven by a recent announcement from the U.S. Treasury Department, which said it would double the size of liquidity support buyback operations for longer-dated notes and bonds.

Traders are now looking for clues on interest rates after Fed Chairman Kevin Warsh's speech at the annual Jackson Hole conference this week. Citi raised its zero-to-three-month gold price target to $4,800 an ounce, citing an eventual easing of tensions around the Strait of Hormuz and lower real interest rates.

However, some gold suppliers in Ghana are facing financial difficulties after GoldBod, the country's artisanal gold marketing agency, failed to provide funds to its suppliers for as long as three weeks. Spot silver gained 0.5% to $69.29 per ounce, platinum rose 0.3% to $1,880.78, and palladium firmed 0.2% to $1,359.14.