Gold hits three-month high as investor demand surges
Gold climbed to its highest level in over three months on Tuesday, buoyed by increased investor interest as markets await key US inflation data.
Gold surged to a three-month peak on Tuesday, driven by heightened investor interest ahead of crucial US inflation data and Federal Reserve Chair Kevin Warsh's upcoming remarks. The precious metal climbed 0.4% to $4,668.19 an ounce, breaking its record since May 14 earlier in the day. US gold futures also experienced a 0.6% increase to $4,724.50 an ounce.
The surge followed the US Treasury Department's announcement to double long-term bond buybacks, sparking worries about a weakening dollar and boosting demand for gold as an inflation hedge. TD Securities noted that the dollar's depreciation is expected to sustain gold prices in the coming weeks, particularly as the Fed has not yet signaled a clear plan to tackle inflation.
Investors are eagerly awaiting Warsh's speech at the Jackson Hole symposium, seeking clues on future monetary policy. The Fed chair's comments hold extra weight due to the imminent release of the US personal consumption expenditures report, the central bank's key inflation indicator. Geopolitical tensions also played a role, with markets observing the impact of expanded US sanctions on Iran and its potential effects on global markets.
Silver, platinum, and palladium also enjoyed gains, with silver rising 0.3% to $69.16 an ounce, platinum climbing 0.4% to $1,883.93 an ounce, and palladium increasing 0.2% to $1,359.
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