Gold Retreats from Three-Month High as Traders Eye Fed Interest Rate Path

Gold prices retreated from their three-month high on Monday as investors shifted focus to the Federal Reserve's interest rate path ahead of the annual Jackson Hole gathering this week.

The precious metal inched lower to trade near $4,600 an ounce, still up 14% this month. The recent spike was fueled by the US Treasury's unexpected intervention in the bond market last week, which revived interest in the 'debasement trade' that helped power gold's record-breaking rally last year.

TD Securities analysts Ryan McKay and Bart Melek noted that precious metals are finding comfort in their higher range but cautioned that this rally may be too early for a renewed run back to record highs. The analysts pointed to limited short-term upside due to elevated energy prices and persistent inflation risks.