1 week ago
Gold Hits Three-Month High Ahead of US Inflation Data
Gold became more expensive on Monday and reached its highest price in more than three months.
It had already risen by more than 5% during the previous week.
A weaker U.S. dollar helped make gold more affordable for people using other currencies.
Investors are waiting for U.S. inflation numbers to learn what might happen to interest rates.
They are also waiting for Federal Reserve Chair Kevin Warsh to speak at the Jackson Hole meeting.
His speech could give clues about how the central bank views inflation and rates.
Uncertainty about the economy, U.S. debt and conflicts made some investors prefer gold as a safer asset.
Poland also bought more gold, while tensions involving Iran and Canada provided additional support.
Spot gold reached its highest level since May 15, with reports putting gains at 0.7% to 0.8%.
U.S. gold futures rose 0.3% to 0.4%, while gold gained more than 5% the previous week.
Investors are watching July PCE inflation data and Federal Reserve Chair Kevin Warsh’s Jackson Hole speech for interest-rate clues.
A weaker U.S. dollar, economic uncertainty and debate over Treasury bond buybacks supported gold demand.
Poland increased its gold holdings, while tensions involving Iran and Canada added to bullion’s safe-haven appeal.
- Who
- Gold investors, the Federal Reserve, Goldman Sachs, Poland’s central bank, Iran, Canada and the United States are central to the report.
- What
- Gold prices climbed to their highest level in more than three months as investors awaited U.S. inflation data and a Federal Reserve speech.
- Where
- Global markets, with the key economic data and Federal Reserve speech connected to the United States and the Jackson Hole symposium.
- When
- Monday, August 24; the reported prices were recorded between 0015 and 0427 GMT, with the data and speech expected later in the week.
- Why
- A weaker U.S. dollar, expectations about interest rates, economic and policy uncertainty, official-sector buying and geopolitical tensions supported gold demand.
Key facts
- Spot gold
- Reuters reported a 0.7% rise to $4,636.34 per ounce at 0015 GMT; another report said it was up 0.8% at $4,641.27 by 0427 GMT.
- Gold futures
- U.S. gold futures rose between 0.3% and 0.4%, with reported prices of $4,694.80 and $4,697.70 per ounce.
- Recent performance
- Gold gained more than 5% during the previous week.
- Key indicators
- Markets are monitoring the July Personal Consumption Expenditures price index and Kevin Warsh’s speech at the Jackson Hole symposium.
- Goldman Sachs forecast
- Goldman Sachs has a $4,900 year-end forecast but said strong demand for bullish gold options could push prices higher.
- Poland’s holdings
- Poland’s central bank reported 20.6 million troy ounces, or 640.2 metric tons, at the end of July, up from 20.3 million ounces at the end of June.
- Other precious metals
- Reports gave silver at $68.98 or $69.51 per ounce, platinum at $1,878.88 or $1,885.38, and palladium near $1,350.
Quotes
Tim Waterer
Chief market analyst at KCM Trade
“Gold is looking sprightly to start the week”
firstpost.com
Sources
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