Gold Retreats from Three-Month High Amid US Inflation Data and Fed Speech
Gold prices retreated on Tuesday after reaching their highest levels in over three months earlier in the day. The precious metal, which had surged following a US Treasury Department announcement last week, was down 0.2% at $4,640.39 per ounce as of 0334 GMT. U.S. gold futures remained steady at $4,696.00.
Analysts expect dips in gold prices to be well-supported by buyers looking for the metal to reach its next upside resistance at $4,900/$5,000. TD Securities noted that US dollar debasement fears should continue to support gold prices in the coming weeks, as the Federal Reserve has not sent a clear signal it is ready to combat higher inflation.
The upcoming US Personal Consumption Expenditures report, which serves as the Fed's preferred inflation gauge, is due on Wednesday. Meanwhile, Fed Chairman Kevin Warsh's speech at the Jackson Hole conference this week will be closely watched for guidance on the recent jump in bond yields and reassurance of his independence from the Trump administration.