Gold Rallies to Three-Month High Ahead of Key US Inflation Data

Gold prices rose to their highest level in more than three months on Monday as investors positioned for US inflation data and a speech by Federal Reserve Chair Kevin Warsh. Spot gold was up 0.7% at $4,636.34 an ounce, its highest since May 15.

The rally follows a sharp increase of over 5% last week after a US Treasury debt buyback support plan weighed on the dollar. A weaker greenback tends to boost gold's appeal for holders of other currencies.

Central bank buying has also continued to underpin demand, with Poland's central bank saying its gold holdings increased to 20.6 million troy ounces at the end of July from 20.3 million ounces a month earlier.