Gold prices extended gains on Monday to hit their highest level in more than three months, as investors looked ahead to U.S. inflation data and a speech later this week by Federal Reserve Chair Kevin Warsh.
Spot gold was up 0.7% at $4,636.34 per ounce, as of 0015 GMT, its highest level since May 15. U.S. gold futures climbed 0.3% at $4,694.80.
Gold rose more than 5% last week after U.S. Treasury’s buyback support plan pressured the dollar. A weaker U.S. dollar makes greenback-priced bullion more affordable for holders of other currencies.
Market participants will closely monitor the July Personal Consumption Expenditures (PCE) price index and Fed Chair Warsh’s speech at the Jackson Hole symposium this week for fresh clues on U.S. rate outlook.
Gold prices could surge past Goldman Sachs’s $4,900 year-end forecast, as surging demand for bullish gold options may amplify further gains, the bank said in a note on Friday.
Highlighting official-sector demand, Poland’s central bank said its gold holdings rose to 20.6 million troy ounces (640.2 metric tons) as of the end of July from 20.3 million ounces as of end-June.
On the geopolitical front, Iran’s foreign minister dismissed the threat of new U.S. sanctions as a sign of desperation and said the expected new measures would fail to defeat Tehran, underpinning bullion’s safe-haven appeal.
Meanwhile, on the trade front, Canada will impose tariffs on some U.S. goods in retaliation for 50% levies ordered by President Donald Trump on Canadian products, Prime Minister Mark Carney said on Saturday, after trade talks between the two neighbors collapsed.
Among other metals, spot silver gained 0.8% at $69.51 per ounce. Platinum rose 0.4% to $1,885.38, while palladium was up 0.1% at $1,350.53.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips)
