On Tuesday, spot gold prices increased by 0.6% to $4,677.19 per ounce, marking the highest level since mid-May, while gold futures rose 0.5% to $4,720.3. This upward trend is attributed to a declining dollar, which has fallen 0.8% this month, making gold more appealing to foreign investors. Additionally, the U.S.
Treasury's bond buyback strategy has helped maintain lower yields, reducing the opportunity cost of holding gold. Analysts at UOB predict that gold is on track for its strongest monthly gain since September 1999, with a remarkable increase of over 15% this month. The rise in gold prices has also positively impacted silver, which saw a 0.4% increase to $69.19 per ounce.
Investors are closely monitoring the upcoming speech by U.S. Fed Chair Warsh ahead of the Jackson Hole Symposium, as it could influence future interest rate expectations. A hawkish stance from Warsh could halt the gold rally, while a dovish surprise could further boost gold prices, as it would lead to reduced expectations for Fed rate hikes and renewed concerns about U.S. debt sustainability