Gold prices surged Monday, climbing 0.90 percent to around $4,644 per ounce, extending last week’s rally triggered by the US Treasury’s buyback announcement. The precious metal reached levels not seen since mid-May as traders position ahead of critical economic data and policy signals. Markets are now focused on two key events: the upcoming US Personal Consumption Expenditures price index release and Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium. Both events could provide crucial direction on the Federal Reserve’s monetary policy trajectory and inflation outlook. The Treasury’s buyback program, designed to improve market liquidity, has already provided support to gold by reinforcing safe-haven demand amid uncertainty about fiscal policy management. Traders and brokers are watching whether the momentum can sustain above the $4,640 level as volatility is expected to spike around these scheduled events.
FXnCO Insight
Position sizing should account for elevated volatility around PCE data and Warsh’s Jackson Hole remarks, which could trigger sharp reversals in gold’s current bullish momentum.
Source: FXStreet