US Inflation Data Expectations Support Gold Prices Amid Market Anticipation
Gold prices continued their ascent on Monday, reaching levels not seen in over three months, as investors await upcoming US inflation data and a speech by Federal Reserve (US Central Bank) Chairman, Kevin Warsh, later this week. Spot gold saw a 0.7% increase, reaching $4636.34 per ounce by 00:15 GMT, its highest level since mid-May. US gold futures also rose by 0.3% to $4694.80. Gold had surged by over 5% last week, supported by the US Treasury's announced stimulus plan, which included bond repurchases, putting pressure on the dollar. A weaker dollar typically makes the precious metal, priced in the US currency, less expensive for holders of other currencies. Market participants are closely monitoring the July Personal Consumption Expenditures (PCE) price index, in addition to the Federal Reserve Chairman's speech during the upcoming Jackson Hole symposium this week, seeking new indications that may shed light on future US interest rate expectations. In a related context, a report issued by Goldman Sachs on Friday suggests that gold prices could surpass its year-end forecast, which indicated a target of $4900, especially with increasing demand for bullish gold options, potentially boosting additional gains. Regarding official sector demand, the Polish Central Bank announced that its gold reserves increased to 20.6 million troy ounces (equivalent to 640.2 metric tons) by the end of July, compared to 20.3 million ounces at the end of June. From a geopolitical perspective, the Iranian Foreign Ministry described threats of new US sanctions as a sign of desperation, affirming that these anticipated new measures would not succeed in weakening Tehran. This scenario enhances the appeal of the yellow metal as a safe haven in times of uncertainty. On the trade front, Canadian Prime Minister Mark Carney stated on Saturday that Canada would impose tariffs on certain US goods in retaliation for the 50% tariffs ordered by US President Donald Trump on Canadian products, following the breakdown of trade negotiations between the two neighboring countries. As for other precious metals, silver also rose in spot transactions by 0.8% to $69.51 per ounce. Platinum increased by 0.4% to $1885.38, while palladium registered a 0.1% rise to $1350.53.
