A solid gold bar model captured in Shanghai, China on March 15, 2026.
Photo | Future Publishing | Getty Images
Gold prices rose to a three-month high on Tuesday, supported by a weaker U.S. dollar and as the U.S. Treasury’s bond purchase plan keeps yields in check.
spot gold Gold rose 0.6% to $4,677.19 an ounce, its highest since mid-May, with UOB predicting gold was on track for its “best monthly gain since September 1999”. The yellow metal has gained more than 15% so far this month.
Gold futures rose 0.5% to 4,720.3, also the highest in more than three months.
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Gold’s strength spilled over into silver as well. spot price It rose 0.4% to $69.19 an ounce.
A weaker dollar makes USD-priced gold more attractive to foreign currency holders, while lower U.S. Treasury yields reduce the opportunity cost of buying bullion.
The dollar index has fallen 0.8% so far this month, and U.S. Treasury yields, which have been rising for most of August but have been managed to be contained by the government’s bond buyback program, have fallen 3 basis points this month.
Investors will also be watching Fed Chairman Richard Warsch’s speech ahead of the Jackson Hole Symposium later this week for further clues about the rate outlook.
While the hawkish Warsh speech is likely to end gold’s ongoing rally, a dovish surprise in Jackson Hole will be extremely bullish for gold. “Markets will continue to price in Fed rate hikes as well as refocus on downside trading amid renewed concerns over Fed independence and U.S. debt sustainability issues,” Citi said in a note.
