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. Spot gold increased by 0.6% to $4,676.75 per ounce as of 0026, following a peak not seen since May 14 earlier in the session. U.S. gold futures experienced an increase of 0.8%, reaching a price of $4,734.50. Prices increased significantly last week following the announcement from the U.S. Treasury Department regarding the decision to double the scale of liquidity support buyback operations for longer-dated notes and bonds.
The U.S. Personal Consumption Expenditures report, which serves as the Federal Reserve’s favoured measure of inflation, is scheduled for release on Wednesday. Fed Chairman Warsh’s inaugural address at the annual Jackson Hole conference this week has gained significance as traders and analysts seek insights regarding the recent surge in bond yields and reassurance of his autonomy from the Trump administration. Citi increased its zero-to-three-month gold price target on Monday to $4,800 per ounce, indicating that the rally still has potential for further growth.
It maintained its six-to-12-month target at $5,000, referencing an anticipated reduction in tensions surrounding the Strait of Hormuz, declining real interest rates, and a less aggressive Federal Reserve. The U.S. announced an expansion of sanctions aimed at severing Iran’s economic lifeline, yet refrained from implementing the most severe measures. Instead, it issued a warning to the global community to halt business dealings with the Islamic Republic. In other developments, Ghana’s artisanal gold marketing agency
GoldBod has reportedly failed to disburse funds to its gold suppliers for a duration of up to three weeks. This situation has compelled certain operators to either suspend purchases or seek loans to maintain their operations, according to five industry sources. Among other metals, spot silver gained 0.5% to $69.29 per ounce, platinum rose 0.3% to $1,880.78, and palladium firmed 0.2% to $1,359.14.
