Gold prices on Tuesday rose to their highest in more than three months, supported by a weaker U.S. dollar and as the U.S. Treasury’s bond buyback plans keep the lid on yields. Spot gold gained 0.6% to $4,677.19 per ounce, its highest since mid-May, with UOB forecasting that gold was on track for its strongest monthly gain since September 1999, with a gain of over 15% so far this month. Silver also gained 0.4% to $69.19 per ounce. A softer dollar makes greenback-priced gold attractive to holders of foreign currencies, while lower Treasury yields reduce the opportunity cost of buying bullion. Investors are now focused on the upcoming speech by Fed Chair Warsh at the Jackson Hole Symposium this week, which could provide further clues on the outlook for interest rates.
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