Gold Soars to Three-Month High Ahead of Key US Economic Events
Gold prices have reached their highest level in over three months as investors await US inflation data and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium. Spot gold has risen 0.7% to $4,636.34 per ounce, its highest since May 15.
The price increase is partly due to a weaker US dollar, which makes gold more affordable for holders of other currencies. Last week, gold prices surged over 5% after the US Treasury's buyback support plan put downward pressure on the dollar.
Market participants are closely watching the July Personal Consumption Expenditures price index and Warsh's speech for fresh clues on US rate outlook. Goldman Sachs has forecasted a year-end gold price of $4,900, but prices could surge past this target as demand for bullish gold options amplifies further gains.
Official-sector demand is also supporting gold prices, with Poland's central bank announcing its gold holdings rose to 20.6 million troy ounces by the end of July.