Gold Surges 10% in August Amid Weaker Fed Expectations

Gold prices surged in August, marking their fastest monthly gain in over seven months. The precious metal rose by 10% last month amid expectations of a weaker Federal Reserve and a relative easing of geopolitical risks.

The US Treasury's expanded long-term bond buyback operation contributed to the increase in gold prices, as did central bank purchases. According to Zafer Ergezen, a futures and commodity markets expert, there have been large-scale gold purchases, similar to those made by major institutional investors or central banks.

The People's Bank of China purchased 19 metric tons of gold last month, Ergezen noted. This could be just the beginning, as these central bank purchases may continue in September.