Gold rally gains momentum ahead of US inflation, Jackson Hole event

Kitco Media
By Reuters
Published:
Updated:
Reuters
Gold rally gains momentum ahead of US inflation, Jackson Hole event teaser image

Aug 24 (Reuters) - Gold prices pushed to their ‌highest in more than three months on Monday, as technical buyers piled into a rally driven by the U.S. Treasury's recent buyback announcement and a weaker dollar ahead of this week's inflation data and Jackson ​Hole Symposium.

Spot gold rose 1.6% to $4,677.14 per ounce by 1334 GMT (9:38 a.m. EDT), hitting ​its highest level since May 14. U.S. gold futures for December delivery rose ⁠1.2% to $4,734.70 per ounce.

"The fundamentals and technicals are kind of lining up bullish for ​the gold market here to start the trading week," said Jim Wyckoff, a market analyst at ​American Gold Exchange. He also said that bond yields "have stabilized, even dipped a little bit today", supporting the metal.

With prices trending higher, Wyckoff said the path of least resistance for gold "will continue to be sideways to ​higher" in the coming weeks, barring a technical reversal signal.

Gold broke above its 200-day moving ​average last week, further strengthening the upward price momentum.

Gold-backed ETFs also attracted inflows of 46.7 metric tons ($6.4 billion) ‌last ⁠week, which was their largest weekly demand in 10 months, according to the World Gold Council, with North American and Europe-listed funds leading the inflows.

Bullion rose more than 5% last week after the U.S. Treasury Department's buyback support plan pushed the dollar to multi-month lows, making greenback-priced bullion cheaper ​for foreign buyers.

The U.S. ​dollar hovered near multi-month ⁠lows as traders awaited details of Iran-related sanctions from Treasury Secretary Scott Bessent who promised to reveal severe measures on Iran. He is ​expected to announce more details at a 1 p.m. EDT (1700 GMT) press conference.
Market ​focus is ⁠also on policy speeches this week in the U.S. and Japan.

Markets are awaiting the Federal Reserve's favored inflation gauge, the Personal Consumption Expenditure price index, due on Wednesday and Chair Kevin Warsh's debut ⁠speech ​at the Jackson Hole Symposium on Friday to gauge ​the outlook on interest rates.

Spot silver inched 0.8% up to $69.52 per ounce, platinum gained 0.7% to $1,891.43, and palladium rose 0.7% ​to $1,359.41.

Reporting by Dharna Bafna and Swati Verma in Bengaluru; Editing by Emelia Sithole-Matarise

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