Gold Pulls Back From Three-Month High as Markets Await Inflation Data and Fed Speech
TLDR
- Gold slipped from a three-month high, with spot gold dropping 0.4% to $4,634.20 an ounce
- Prices had surged last week after the U.S. Treasury announced plans to expand buybacks of longer-dated government debt
- Investors are now watching Wednesday’s core PCE inflation data and Fed Chair Kevin Warsh’s Friday speech at Jackson Hole
- Dollar weakness and lower bond yields had been supporting gold demand from overseas buyers
- Analysts say gold needs to hold above $4,700 an ounce to maintain its bullish momentum
Gold pulled back slightly on Tuesday after hitting its highest price since mid-May, as investors paused and waited for key economic signals later this week.
Spot gold fell 0.4% to $4,634.20 an ounce in early trading. Gold futures dropped 0.2% to $4,691.14.
The retreat came after a strong run last week that pushed prices to a more than three-month high.
What Drove Last Week’s Rally
The U.S. Treasury announced plans to at least double buybacks of longer-dated government debt. That sparked fresh concerns about fiscal policy and the long-term purchasing power of the dollar.
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