Gold rises to highest since mid-May as dollar softens
Gold climbs nearly 1% to above $4,650 an ounce, its highest since mid-May, as a subdued dollar lifts bullion and markets await US inflation data and Federal Reserve Chair Kevin Warsh comments.
Gold rose nearly 1% to above $4,650 an ounce on Monday, reaching its highest level since mid-May, as a subdued dollar boosted the appeal of bullion.
Investors are now awaiting US inflation data and comments from Federal Reserve Chair Kevin Warsh this week for clues on the interest-rate outlook.
Gold gained more than 5% last week after a US Treasury buyback support plan pushed the dollar to multi-month lows.
Markets are now focused on the July PCE price index due Wednesday and Warsh’s speech at the Jackson Hole Symposium on Friday.
Traders are pricing in roughly a 40% chance of a rate hike in September, while the probability of rates remaining unchanged stands at around 60%, according to CME FedWatch.
On the geopolitical front, the US threatened Iran with what it described as “the greatest financial offensive ever marshalled,” as Washington prepares to impose economic sanctions targeting Iran’s trade partners.