Gold rose on Tuesday, extending a rally
driven by the U.S. Treasury’s recent buyback announcement, while
focus shifted to key U.S. inflation data and a speech later this
week by Federal Reserve Chair Kevin Warsh for clues on interest
rates.
FUNDAMENTALS
Spot gold was up 0.6 per cent at $4,676.75 per ounce, as of
0026 GMT, after hitting its highest since May 14 earlier in the
session. US gold futures rose 0.8 per cent to $4,734.50.
Prices rose sharply last week after the US Treasury
Department said it would double the size of liquidity support
buyback operations for longer-dated notes and bonds.
The US Personal Consumption Expenditures report, the
Fed’s preferred inflation gauge, is due on Wednesday.
Fed Chairman Warsh’s debut speech at the annual Jackson
Hole conference this week has taken on added weight as traders
and analysts look for guidance about the recent jump in bond
yields and for reassurance of his independence from the Trump
administration.
Citi raised its zero-to-three-month gold price target on
Monday to $4,800 an ounce and said the rally still had room to
run. It kept its six-to-12-month target at $5,000, citing an
eventual easing of tensions around the Strait of Hormuz, lower
real interest rates and a less hawkish Fed.
The US unveiled an expansion of sanctions that it said
would cut off Iran’s economic lifeline but stopped short of the
most punishing measures, instead putting the world on notice to
cease doing business with the Islamic Republic.
Elsewhere, Ghana’s artisanal gold marketing agency GoldBod
has not provided funds to its gold suppliers for as long as
three weeks, forcing some operators to halt purchases or borrow
to stay in business, five industry sources told Reuters.
Among other metals, spot silver gained 0.5 per cent to
$69.29 per ounce, platinum rose 0.3 per cent to $1,880.78 and
palladium firmed 0.2 per cent to $1,359.14.
Published on August 25, 2026
