Gold Pulls Back from Three-Month Peak Amid Inflation and Fed Fears
Gold prices retreated on Tuesday after hitting their highest level in over three months due to investor attention shifting towards upcoming U.S. inflation data and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium.
The yellow metal pulled back to around $4,640-$4,646 per ounce, while futures remained steady near $4,700 after a strong rally supported by a weaker dollar and falling Treasury yields following the U.S. Treasury Department's announcement to double long-term bond buyback operations.
Analysts expect any dips in gold prices to find support at around $4,900-$5,000 per ounce as the next resistance level, according to Tony Sycamore of IG.
The Federal Reserve's preferred inflation gauge, the U.S. Personal Consumption Expenditures report, is scheduled for release on Wednesday, and Fed Chair Warsh's speech at the Jackson Hole symposium this week carries added significance as traders and analysts seek guidance on recent bond yield surges and reassurances about his independence from President Donald Trump's administration.