Gold prices gained 10 percent in August, reaching a seven-month peak
Gold prices recorded a 10 percent increase in August, experiencing their fastest monthly rise in seven months and closing the month at 4,449 dollars.
The activity in the gold market throughout August brought the highest monthly performance in seven months, driven by developments in US Treasury and Federal Reserve policies. Spot gold gained 10 percent during this period, rising to 4,449 dollars.
Strong Rise in August
Gold prices exhibited a remarkable performance with a 10 percent value gain recorded in August, closing the month at 4,449 dollars.
This rate was recorded as the precious metal's fastest monthly rise within the last seven months.
Factors Supporting the Rise
The US Treasury's expansion of the scale of long-term bond buyback operations supported gold prices.
Additionally, slowing inflation in the US and employment data weakening expectations for Fed rate hikes were influential.
Volatile Course Throughout the Year
Having gained 12.4 percent in January and 8.5 percent in February, spot gold had entered a downward trend with the onset of the war in the Middle East.
Experiencing losses at various rates in March, April, May, and June, gold recorded a 0.9 percent increase in July.
A Similar Picture in Silver
A price movement similar to gold was also observed in the silver market, and the ounce price of silver caught an upward momentum.
With the weakening of Fed rate hike expectations, the ounce price of silver increased by 15.4 percent in August to reach 66.5 dollars.
Central Bank Purchases
Market expert Zafer Ergezen stated that the rise in gold prices was a reactive surge against the US Treasury Department's increased bond purchases.
Ergezen pointed out that there were reports during this period that the Central Bank of China purchased 19 tons of gold, and that institutional purchases were effective.