Gold prices rise on US bond decision and inflation expectations

Gold prices continued their upward trend, reaching their highest level in over three months, supported by the US Treasury's decision to expand its long-term bond buyback program. Markets are focused on the upcoming inflation data.

Impact of the Bond Decision

The US Treasury's announcement that it will double the size of its long-term bond buybacks increased investor concerns about the dilution of the dollar's value, supporting demand for gold.

Spot gold rose 0.4% to $4,668.19 per ounce, with prices hitting their highest level since May 14 during the session, while US gold futures also increased by 0.6%.

Critical Data and Fed Expectations

Markets are focusing this week on the US inflation data to be released and Fed Chair Kevin Warsh's first speech at the Jackson Hole symposium.

The US Personal Consumption Expenditures price index, closely monitored by the Fed, is expected to be released on Wednesday and influence expectations for interest rate policy.

Analyst Assessments and Other Metals

Analysts state that pullbacks in gold in the upcoming period may be met with buyers and that prices have the potential to head towards the resistance zone in the $4,900-$5,000 band.

Among other precious metals, spot silver increased 0.3% to $69.16, platinum rose 0.4% to $1,883.93, and palladium increased 0.2% to $1,359.