On Tuesday, gold prices reached their highest point in over three months, buoyed by a softer U.S. dollar and the U.S. Treasury’s bond buyback plans, which continue to cap yields.
Spot gold rose 0.6% to $4,677.19 per ounce, reaching its highest level since mid-May. UOB predicts that gold is headed for its strongest monthly increase since September 1999.
Gold futures increased by 0.5% to 4,720.3, reaching a level not seen in over three months.
The strength extended to silver, with its spot price rising 0.4% to $69.19 per ounce on Tuesday.
This month, the dollar index dropped by 0.8%, making gold priced in dollars more appealing to foreign currency holders, as well as lowering Treasury yields, which decreases the opportunity cost of purchasing gold.
Moving forward, investors will also focus on the upcoming speech by U.S. Fed Chair Warsh ahead of the Jackson Hole Symposium later this week, as they look for more clues about the interest-rate outlook.
Since the beginning of August, gold has gained more than 15%.
By CEO NA Editorial Staff
